Dictionary of Real Estate Terms: inspection addendum or clause
inspection addendum or clause
in a contract to buy or sell real estate, a clause or attachment that allows the buyer (or a qualified party) to inspect the property. If repairs are needed, the seller may be allowed to perform the repairs up to a dollar limitation or choose not to sell. The buyer may require the seller to make repairs, negotiate a lower price, or back out. Same as property condition addendum.
Example: The inspection addendum required an inspection to be completed within 10 days of the date of contract. The seller was required to pay for up to $1,000 of repairs. If more than $2,500 of repairs were needed, either party could renegotiate or cancel the contract.
