Protect Your Investment with the Inspection Clause

Enrique V Urdaneta


What is the Inspection Clause?

The inspection clause is the period during which a thorough physical inspection of the property can be carried out to identify any hidden damages or deficiencies that may require repairs, which were not visible on the initial viewing of the property.

Where is This Clause Established?

The inspection clause is established in the purchase/sale contract, detailing:

  • The maximum date by which the inspection must be completed
  • The maximum amount of estimated repairs or damages that would allow for the cancellation of the contract

Who Conducts the Inspection and How?

The inspection can be performed by a licensed inspector who uses instruments, tools, and measurement techniques to assess the following:

  • Structure
  • Appliances
  • Air conditioning and heating systems
  • Water heater
  • Electrical wiring
  • Roof condition
  • Water pressure/plumbing
  • Electrical switches
  • Water source and quality
  • Septic system
  • Presence of pests (termites, cockroaches, rats, mice, etc.)

The inspector will prepare a detailed report with estimates for repairs or replacements, providing a clear understanding of the property's condition.

If you choose not to hire an inspector, you can perform the inspection yourself.

Is the Seller Responsible for Repairs or Providing a Credit?

No, the inspection allows the buyer to decide whether to proceed, attempt to negotiate, or rescind the contract based on the amount specified in the clause. The seller is not obligated to make repairs or offer a credit.


Enrique Vicente Urdaneta

Real Estate Advisor | eXp Realty | EVU Luxury Homes


[email protected]


Disclaimer: The information presented in this article is intended to provide a general understanding of the topic. However, please note that I am a real estate agent, not a lawyer, accountant, tax, or financial advisor. This content should not be taken as legal, tax, accounting, or financial advice. The laws and regulations related to this topic can be complex and may change or expand in the future. Therefore, it is crucial to consult with a qualified professional, such as a specialized financial or tax advisor, before making any decision based on this information. As a real estate agent, I can provide various options and professional guidance related to the real estate aspects of your investment strategy, and for matters related to tax implications, legal issues, and financial planning, please consult with the appropriate professionals, which whom I have allies I can refer.

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