On January 1, 2015, the Residential Sales Contract replaced the Regional Sales Contract used in the Northern Virginia region.  Among the changes to the contract is an amendment pertaining to a purchaser’s pre-settlement access to the property. Under paragraph 11 of the new contract, the purchaser may conduct multiple walk-through inspections for a period of seven days prior to settlement.

Paragraph 11 of the new Residential Sales Contract provides: “ACCESS TO PROPERTY Seller will provide Broker, Purchaser, inspectors representing Purchaser, and representatives of lending institutions for Appraisal purposes reasonable access to the Property to comply with this Contract. In addition, Purchaser and/or Purchaser’s representatives will have the right to make walk-through inspection(s) within 7 days prior to Settlement or occupancy, unless otherwise agreed to by Purchaser and Seller.” 

Q:  How does the new contract provision differ from the old contract?
A: The Regional Sales contract provided for a walk-through inspection within five days prior to settlement or occupancy. The new Residential Sales Contract (K1321) allows the purchaser to conduct multiple inspections, and increased the inspection period from five to seven days. 

Q:  Why allow multiple inspections?
A: There were too many instances in which a purchaser conducted a walk-through inspection the day before (or the day of) settlement, only to discover outstanding items that the seller had agreed to repair, yet failed to do so. This scenario created an impediment to a smooth closing because lenders often would not allow a credit or escrow adjustment at closing. Providing for more than one walk-through inspection gives purchasers the ability to check on the progress of work (or confirm the completion of work) as early as one week before settlement. It also preserves the standard and recommended practice of conducting a final walk-through the day before or morning of settlement.

Q: Why was five days increased to seven days?
A: An additional two days provides the purchaser time to check on the progress of work and follow-up with the seller if work is not completed, thereby allowing time for the parties to make alternative arrangements.

Q: Is the purchaser allowed more than one walk-through inspection, even if there is nothing for the seller to repair or replace?
A: The contract does not set a limit on the number of walk-through inspections. Under paragraph 11, access must be reasonable in order to comply with the terms of the contract.  

Q:  Can the seller limit the purchaser to only one walk-through inspection?
A: No, unless the purchaser agrees to be limited to one walk-through inspection.

Q:  What is the definition of “Purchaser’s representative” under paragraph 11? 
A: Purchaser’s representative refers to anyone who represents the purchaser in a real estate transaction (i.e. the purchaser’s broker and/or agent). The purchaser may only bring a representative, who must be on the premises for purposes of complying with the terms of the contract. Decorators, painters and purchaser’s contractors (who will be performing work after settlement) do not qualify.  

Q: Can a purchaser bring his/her contractor or home inspector to the walk-through to ensure that work was completed in accordance with the home inspection report?
A: Yes, as long as the contractor or home inspector is on the property for purposes of ensuring that work was completed in accordance with the terms of the contract.

Q:  Is a purchaser allowed access to the property to conduct a home inspection for informational purposes only?
A: It depends. If the contract is contingent upon a home inspection and the home inspection addendum is part of the contract (thereby allowing the purchaser the right to void the contract under the contingency, but not negotiate specific items), then access to the property is permitted under paragraph 11. If the contract is not contingent upon a home inspection, but purchaser wishes to conduct a home inspection for informational purposes (without the right to void under the contingency), then the purchaser must add language to the contract giving the purchaser access to the property, or obtain the seller’s consent.

Q:  Would Purchaser’s Limited Access to Premises Agreement (K1118) be the appropriate form to use for allowing a purchaser access to conduct a home inspection? 
A: No. Purchaser’s Limited Access to Premises Agreement is used when a purchaser wishes to take possession of the property prior to settlement, but does not intend to occupy the property (e.g., if a purchaser wishes to begin renovations or have furniture delivered to the property prior to settlement). In such case, the seller would tender possession of the property to the purchaser (including keys) on the date agreed to by the parties.

Brenda Heffernan is a staff attorney and the NVAR associate director of education programs.