Inspections required by most contracts:

• GENERAL INSPECTION: The Seller is obligated to repair major appliances, heating, plumbing, air-conditioning and electrical systems, and keep them in working order until the closing.
• ROOF INSPECTION: The Seller may be obligated to spend up to 3% of the purchase price to repair leaks or other damage to the roof. This is especially important in areas with heavy snows.
• TERMITES AND OTHER WOOD DESTROYING ORGANISIMS:
  
  • In some states, the Seller must provide the Buyer with a letter guaranteeing that the home is free of termites. This letter must be provided by a licensed pest control company.
    The cost is usually between $50 and $75 assuming there is no infestation. Any infestation must be corrected before closing.
  • In other states, the Buyer pays for the inspection, and the Seller is obligated to spend up to 3% of the purchase price to repair any termite damage.

Most contracts specify a time limit for these inspection. If the inspection is not completed in time, the Buyer forfeits his right to the inspection.

If the inspection is completed in time, a report is forwarded to the Seller.

Want to avoid inspection problems?

• Hire your own inspector. For about $200 you can get a written report on the condition of your home. Problems identified by your inspector can usually be repaired at a lower cost than after they are pointed out by the Buyer's inspector. The Home Inspector Locator can help in finding a local inspector.
  
• Sell the home "as is." The Seller can stipulate in the Sales Contract that the home is being sold "as is." This usually requires the Seller to accept a lower price on the property.