Inspection contingency when representing the buyer.

[Claribel LopezAbreu]

As we all know the real estate market is very aggressive. It’s a sellers market and agents are being very creative when presenting offers. How do I word in my contract that my buyer is doing an inspection just for informational purposes but not requesting any credit or repairs. However, what about if structural damages/plumbing or electrical are discovered. Can you walk away from the contract without loosing your deposit/earnest money. I’m in NJ.

What’s the best way to word it in the contract (inspection for informational purposes) but at the same time protect your buyer.  Advise please;

[Patricia Steiner]

If the electrical isn't insurable would that be okay with your client?  If a structural beam was cut would that be okay?  The problem with AS-IS - is that you're not saying your buyer will take it AS IS if AS IS is unacceptable.  Leave the Inspection Contingency alone; for competitive purposes, shorten the contingency period.  Then in the "other conditions"/narrative section state that the property must pass a 4-Point Inspection.  That not only ensures that the major components are in good condition but that they have enough life remaining to engage insurance coverage.

There are a lot of ways to make an offer more enticing without boxing your client in.