Inspection & Offer Clause Verbiage Examples

 

Highest & Best Notification 

Communicate the seller’s deadline and expectations clearly when calling for final offers. For MLS and Showingtime use. 

The seller has called for final and best offers. Please submit your buyer’s strongest terms by [Date] at [Time]. The seller intends to review all offers following the deadline and may select an offer without further negotiation.

General Inspection Clauses

Pass / Fail Inspection

Use when inspections are for buyer satisfaction only and repairs will not be negotiated. Buyer retains the right to walk away but cannot request repairs.

INSPECTION WILL BE FOR BUYER SATISFACTION ONLY. Upon completion of the inspection, Buyer shall deem acceptance of condition as Pass/Fail. No repairs shall be negotiated as part of the inspection.

Dollar Threshold Inspection

Use when only larger repair items will be negotiated. Fill in the threshold amount to define the floor for negotiable repair requests.

Buyer shall only negotiate repair requests for condition items that exceed $_____.

Sewer Scope 

Sewer scope language should clearly identify responsibility, verification, and repair procedures. Choose from four graduated approaches based on property condition and negotiated risk allocation.

1. Seller agrees to have the sewer line professionally cleaned prior to closing and provide proof of completion.

2. Seller agrees to have the sewer line professionally cleaned and re-scoped prior to closing. If defects are identified, the parties agree to negotiate repairs or other mutually acceptable terms. If no agreement is reached, either party may exercise their rights under the inspection contingency.

3. Seller agrees to hire a licensed sewer contractor to repair the sewer line so it is fully functional from the property’s cleanout to the municipal sewer connection prior to closing.

4.  Seller agrees to hire a licensed sewer contractor to repair the sewer line so it is fully functional prior to closing. Buyer and Seller agree to split repair costs equally unless otherwise agreed in writing.

Radon Mitigation

Clearly identify responsibility, performance standard, and documentation when radon is discovered or a test is required.

Option 1 

Radon mitigation system to be installed by a licensed radon- reduction contractor to reduce the radon levels to below 4.0 pCi/l. Radon to be retested by the seller after installation and results to be provided to the buyer. 

Option 2 

Seller agrees to install a radon mitigation system and provide proof that radon levels are below the EPA action level of 4 pCi/L.

HVAC
The HVAC system must be cleaned and certified by a licensed MN HVAC technician to be in good, safe, and efficient working order. If the technician determines that the HVAC system is not in good, efficient working order, the seller must complete all necessary repairs or replacements.

All HVAC work must be completed by a licensed MN HVAC technician. Results and paid receipts must be provided to the buyer before the final walk-through. If the HVAC system is found to be unsafe or not in efficient working order, the seller must repair or replace it at their expense before closing.

1. The HVAC system must be cleaned.
2. The HVAC system must be certified to be in safe, efficient working order.
3. The thermostat must be in working order.
4. The motor and all filters in the air exchanger must be replaced.

All windows must be fully functional by the final walk-through. If any windows require repair or replacement to become functional, the seller must have the work completed by a licensed MN contractor and provide copies of paid receipts before the final walk-through. The seller is responsible for any re-inspection fees required by the appraiser to finalize the appraisal and financing for closing.

Open Permit
Seller agrees to provide proof from the city that the current outstanding permit has been closed ie. basement permit.

Electrical Examples
The seller will pay up to $_____ towards electrical repairs, including ceiling fans, light fixtures, and installation costs. All electrical work must be performed by a licensed electrician. The buyer will be responsible for any costs exceeding $_____. The invoice will be paid from the seller’s proceeds at closing. All necessary permits must be obtained and closed out before closing.

All electrical items to be completed by a MN licensed electrician.

1. All breakers in panel box  to be properly sized in accordance with the wire size.
2. Open breaker slots to be covered with snap-in protective breaker covers.
3. Relocate service panel box to a proper location out of bathroom per electrical code.
4. Exposed romex wire in the garage to be installed inside rigid conduit, or inside the wall or ceiling.

All plumbing items to be completed by a MN licensed plumber.

1. Repair the leaking shower surround in the basement bathroom to ensure it no longer leaks.
2. If the washing machine drain in the wall is not being used, it must be capped.
3. Replace the interior shutoff valve for the exterior hose spigot. (located on the ceiling of the mechanical room)
4. Floor drain in the basement to be inspected and repaired to resolve the gurgling sound.
5. Water leak down the garage wall must be inspected and repaired to prevent further leakage. Any resulting damage or mold must be properly mitigated.

Storm Damage Clauses 

Roof & Siding Damage 

Seller agrees to repair or replace any storm-damaged roofing and/or siding prior to closing using a licensed contractor. Seller shall provide Buyer with documentation confirming completion of the work. If repairs cannot be completed prior to closing, Buyer and Seller agree to negotiate an alternative resolution, including an escrow agreement or closing extension. 

Wind, Hail & Water Damage 

Seller agrees to repair any storm-related wind, hail, or water damage affecting the property prior to closing. All repairs shall be completed by qualified professionals, and Seller shall provide documentation of the completed work. If additional damage is discovered during the repair process, Buyer and Seller agree to negotiate in good faith to determine an appropriate resolution. 

Tree Damage 

Seller agrees to remove any storm-damaged trees or fallen tree debris affecting the property prior to closing and repair any resulting property damage caused by the fallen tree(s). Seller shall provide documentation of completed work if requested. If repairs cannot be completed prior to closing, Buyer and Seller agree to negotiate an alternative resolution. 

Note: All storm damage clauses should be accompanied by a written scope of work, contractor identification, and documentation of completion before closing proceeds. Where damage is material, consider an escrow holdback or closing extension as protective alternatives.

Escrow Examples
General Outline
Seller agrees to escrow 1.5 times the estimate/invoice received on _____ date for ____ repair.  All work shall be completed by the company issuing the estimate/invoice.  Seller and buyer agree to cooperate for property access to allow for swift completion of the work needed.  Proper permits and paid receipts will be provided to the buyer and buyers agent upon completion. 

1 – For Buyer (specific)
Seller agrees to bring certified funds of $______ for unfinished garage repair to closing. Funds will be held in Keller Williams Premier Realty escrow account to cover the remaining invoice for the garage door replacement/repair and any additional cost that may come up during installation.

Keller Williams Premier Realty will pay Ole and Lena’s Garage Door Service directly for the invoice. Any remaining funds will be returned to the seller, Kelsey Okey. Payment to both the garage company and seller will be disbursed within 5 business days after work has been completed along with a copy of the paid invoice.  All work to be completed within 2 weeks of closing or all funds will be refunded to the seller.

Checks to be paid to the following…

Ole and Lena’s Garage Door Service, LLC
P.O. Box 20732
Bloomington, MN 55420952-888-1110

Kelsey Okey
5245 43rd Ave. So.
Minneapolis, MN 55417

2 – For Seller
Seller will be placing $5,839.00 out of the seller’s proceeds at closing into Keller Williams Premier Realty-Lake Minnetonka’s escrow account to cover the cost of the three remaining windows and installation that will be installed by PCS Residential in January 2014. Keller Williams Premier Realty- Lake Minnetonka will disburse the final payment of $5839.00 directly to PCS Residential upon completion of the final three windows being installed by PCS Residential providing Keller Williams Premier Realty- Lake Minnetonka with a copy of the final inspection approval of the closed out permit from the City of Plymouth.

PCS Residential final check will be mailed to 2005 Pin Oak Dr, Eagan, MN 55122 within 3 business days of receipt of the above described closed permit.

Home Warranty

Specify purchaser, coverage length, seller contribution, and effective date to avoid ambiguity at closing.

Option 1 
Seller to pay for a home warranty of buyer’s choice up to $____   Buyers agent will order and provide title companies and listing agent with invoice for home warranty prior to closing for payment on Alta statement by the seller.  (make sure to check the costs for the specific property by contacting the warranty company – remember to check for well/septic/extra furnaces/ pools / hot tubs / any addition add ons that would be property specific so your buyer has proper coverage) 

Option 2 

Seller agrees to purchase a one-year (or two-year) home warranty of Buyer’s choosing, effective on the date of closing and in Buyer’s name. Seller’s contribution toward the Buyer’s home warranty shall not exceed $750.00.

MISC examples

Personal Property Removal 

Use when the seller will remove personal property before the buyer’s final walk-through. 

Seller shall remove all personal property and debris not requested as part of this Purchase Agreement or the attached Personal Property Addendum prior to Buyer’s final walkthrough. 

Property Cleaning 

Use when the seller agrees to deliver the property in broom-clean condition at closing. 

Seller agrees to deliver the property in broom-clean condition at closing.

Seller to hire professional insured title contractor to regrout the master shower title with same color grout as currently installed to prevent any further water intrusion.

Seller to hire professional insured appliance contractor or plumber to repair the dishwasher to no longer leak to prevent future water intrusion.  If it cannot be repaired, the seller agrees to install a new dishwasher of similar kind, color and quality. 

Seller agrees to have the following items completed at seller’s expense and provide paid receipts to the buyer by _______, 20__. This signed amendment removes the inspection contingency. 

I. The following to be repaired by a MN licensed Electrician
GCFI outlets to be installed in the following locations: Microwave; Stove/Oven on110 Volt in Kitchen; 110 Volt Laundry Outlet;Dishwasher/Garbage Disposal on same outlet – needs GCFI;

II. The following to be repaired by a MN licensed HVAC
Air conditioner and Furnace appear to be original and well over 20years old. Both to be serviced, tuned up and certified to be in proper working condition. Repair as necessary.

III. The following to be repaired by contractor/handyman
Upper level bathroom exhaust can loose from roof decking. Moisture in the attic will allow biological growth. Inspect and Reattach to roof decking. Ensure proper operation.

• Seller will have subcontractor fix/replace the microwave fan, handle on gas valve and attach exhaust fan duct properly in attic
• Seller will have licensed electrician repair/replace obstructed outlets and ungrounded 3 prong outlets. Electrician will also repair double all tapped breakers in the electrical panel.
• Seller will have licensed contractor repair/seal friable asbestos on the basement boiler pipes