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Legal Blog

The Legal Blog, brought to you by NVAR's Professional Standards department, helps you stay on top of the latest rules and regulations in the industry.

Why did NVAR change the home inspection process?

Oct 31, 2016

Contract Issues

Why did NVAR change the home inspection process?

Answer: The former Home Inspection Contingency had three unfortunate shortcomings: (1) every three days, agents were asked to deliver offers/counteroffers on their clients' behalf, leading to potential liability if agents failed to properly deliver; (2) Sellers were using the Contingency as means to void the contract  ?- luring Purchasers into a negotiation, and then simply sitting on a counteroffer for three days and allowing the contract to become void; and (3) countless contracts were unintentionally (and often unknowingly) voided by a failure to respond properly or in a timely way to a counteroffer. The new Home Inspection Contingency eliminates each of these hazards. Rather than the rigid back-and-forth requirement that previously existed, the parties now contractually define a "Negotiation Period." This window of time begins when the Purchaser delivers the Home Inspection Contingency Removal Addendum (and the entire inspection report(s)). It is designed to give the Purchaser and Seller (and more importantly, the agents) one clear time horizon in which to resolve all home inspection issues, come up with a resolution, and draft an addendum amending the contract.

Group(s):
  • Contract Issues