đ§ What Is an Inspection Repair Request Clause in Real Estate?
An inspection repair request clause explains how buyers may request repairs after the home inspection, how sellers must respond, and what happens if the parties cannot agree. It sets clear rules for negotiating fixes, credits, or contract changes.
How an Inspection Repair Request Clause Works
After completing the inspection contingency, the buyer may submit a formal repair request. This clause describes:
- How the buyer must submit repair requests (written notice required).
- What types of items may be requested (defects vs. cosmetic issues).
- The deadline for submitting repair requests.
- How the seller must respondâaccept, reject, or negotiate.
- Whether repairs must be completed by a licensed contractor.
- How credits, concessions, or price reductions may be substituted for repairs.
The clause ensures both sides follow a clear, documented process instead of informal conversations.
Why the Inspection Repair Request Clause Matters
For Buyers:
- Gives a formal way to ask for repairs based on inspection findings.
- Allows renegotiation without canceling the deal.
- Protects against moving forward with unsafe or defective conditions.
For Sellers:
- Creates a structured way to review and respond to requests.
- Prevents excessive or improper repair demands.
- Allows counteroffers such as credits or reduced price.
For FSBO Sellers:
- Replaces agent involvement with clear rules in writing.
- Prevents disputes over âhe said/she saidâ repair conversations.
- Ensures documentation for closing and lender requirements.
Common Outcomes After a Repair Request
The buyer and seller typically negotiate one of the following:
- Seller agrees to complete repairs before closing.
- Seller offers a repair credit to reduce closing costs.
- Seller lowers the purchase price instead of repairing.
- Buyer accepts the home as-is.
- Buyer cancels if allowed under the inspection contingency.
Most repairs require a written agreement using a purchase addendum.
What Happens If the Buyer and Seller Canât Agree?
If the parties cannot reach a compromise:
- The buyer may cancel the contract if still within the inspection contingency period.
- The seller may refuse repairs and keep negotiating.
- The buyer may accept the home as-is.
- If deadlines are missed, the buyer may lose the right to cancel (see Contingency Deadline Clause).
- If the deal collapses, the earnest money may be released based on the Earnest Money Release Clause.
Good documentation prevents disputes during closing.