Inspection Contingency Addendum to Purchase Agreement

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Updated February 24, 2023

An inspection contingency addendum establishes how the buyer of real estate may opt out of a purchase agreement if an inspection should reveal material defects in the property. It’s in the buyer’s best interests to use this addendum to allow home inspectors, electricians, plumbers, or any other contractors to inspect the premises.

If any objections are found in the property, the buyer and seller will have to negotiate and come to terms, or else the the buyer will be able to be released from the agreement (and their earnest money deposit refunded). The buyer may also waive any objections that are found in the event that the seller chooses not to re-negotiate the terms of the transaction.

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How to Write

Download in Adobe PDF, Microsoft Word (.docx), or Open Document Text (.odt).

1 – Select The Appropriate File Then Save It

A copy of this addendum template can be obtained through the links above or the buttons under the preview. It is recommended to save a useable copy to your machine then simply enter information directly onscreen using a pdf editor or compatible word processing program.

2 – Identify The Agreement This Addendum Accompanies

We will need to define this addendum through the agreement it will be attached to. Before doing so, we shall declare the date of this addendum by presenting it using the first two blank spaces. The next two blank lines (after the phrase “…Agreement Created On”) will call for the signature date or effective date listed on the contract this paperwork concerns. The next required pieces of information will also require you refer to the property agreement this pertains to. Transcribe the street address, city, and state where the property is located from the concerned agreement to the next three blank spaces. Locate the full name of the “Seller” listed on the agreement then place it on the next blank line.

3 – Attend To The Inspection Checklist

The next paragraph contains some required language and needs no attention, however, directly below, is a checklist of the common areas and systems that most properties are expected to keep well-maintained. Check each one that must be inspected. Thus, if you wish the entire “Air Conditioning” system be inspected,  mark the first checkbox. If you would like the “Air Conditioning,” “Electrical Systems/Wiring,”  and “Optic Wiring” then, mark the checkboxes labeled “Air Conditioning,” “Electrical Systems/Wiring,” and “Other.” This would require you enter the words “Optic Wiring” on the blank line after the word “Other” There is enough room to define three additional topics for inspection. If more are required you may use your editing program to copy and paste additional “Other” checkboxes.

4 – Supplement This Document With Facts Relevant To This Inspection

In the next paragraph, locate the checkboxes labeled “Buyer,” “Seller,” and “50% Buyer/50% Seller.” Mark the first checkbox if the Buyer will pay for this inspection, the second checkbox to indicate the Seller will pay for his inspection and the third checkbox if the cost of the inspection will be split between the Buyer and Seller. In most cases, there will be a couple of deadlines at play. Find the paragraph that starts with the words “Maintenance That Is…” then use the first two spaces to document the due date for all the inspections this property requires. Finally, use the last two blank spaces in this paragraph to present the Date when a report of all found defects/repairs is due to the Seller. In addition to these deadlines, the next paragraph will provide two blank lines where you must document the deadline for any objections from proceeding by placing this deadline’s month and calendar date on the blank space after the phrase “…Negotiated Between Buyer And Seller By” then the year of this deadline on the blank space after “20.”  Naturally, the Seller may have some concerns about losing an opportunity to sell the property during the time frames before these deadlines. If the Seller will be allowed to continue advertising the property while this addendum is active, then mark the first box in the last statement. If not, then mark the second box in the last statement. Make sure that whatever you mark here does not conflict with any requirements of the attached agreement or any other paperwork affecting this property, this transaction, and these parties.

5 – The Buyer, Seller, And Agent Must Combine For This Execution

Each Buyer, Seller, and Agent listed in the agreement this addendum will be attached to must sign this paperwork in order for it to be executed properly. A distinct area has been reserved for this task at the end of this document and will allow for two of each of these entities to provide the necessary item. Note: If there are more than two of any of these entities, then you must add additional lines for them to meet these requirements as their signatures will be required as well.

First, every Buyer who has signed the purchase agreement should sign athe blank line “Buyer’s Signature” then supply the signature date when he or she supplied the executing signature on the “Date” line.  Next every Seller who has executed the agreement must also sign his or her name on  one of the lines labeled “Seller’s Signature.” This action will also require a date of signature reported on the space labeled “Date.” 

Finally, the Agent(s) named in the original agreement will need to sign the “Agent’s Signature” line then enter the current date as the signature date on the adjacent space.