Inspection Resolution Deadline

During: Contract to Close: Inspection and Due Diligence: Inspection Resolution Deadline

The Inspection Resolution Deadline is part of the Inspection and Due Diligence process and a deadline in our Contract to Buy and Sell Real Estate.

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Complete the "Inspection Resolution Deadline" checklist:

https://learntoberich.com/inspection-resolution-deadline/

Mark this task as complete when done.

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If you objected using an "Inspection Objection", you will usually use an "Inspection Resolution" form with the help of your Real Estate Broker to come to a resolution to what you and the Seller agreed to regarding the inspection items.

After the "Inspection Objection" your Real Estate Broker with your assistance will negotiate with the Seller and Seller's Real Estate Broker to find terms that are acceptable for you.

IMPORTANT: This must be done prior to Inspection Resolution Deadline. If you have not come to terms by the Inspection Resolution Deadline and you still want to purchase the property you must withdraw your "Inspection Objection" prior to the Inspection Resolution Deadline or your contract will terminate.

The inspection process has lots of nuance so discuss this in detail with your Real Estate Broker.

Mark this complete once you've come to terms on your inspection resolution with a fully executed "Inspection Resolution" form, withdrawn your "Inspection Objection" or did not object at all.

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If you've come to a resolution regarding your inspection concerns, then your Real Estate Broker should prepare either an "Amend/Extend" to the "Contract to Buy and Sell Real Estate" or an "Inspection Resolution" to document the resolution.

In addition, they should prepare your "Inspection Objection" to have you withdraw it so your contract does not terminate.

Mark this task as complete when done.

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If you've come to a resolution regarding your inspection, then sign the "Amend/Extend" to the "Contract to Buy and Sell Real Estate" or "Inspection Resolution" to document the resolution.

Additionally, sign the withdrawal section of the "Inspection Objection" via DocuSign.

Mark this task as complete when done.

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Save the "Amend/Extend" to the "Contract to Buy and Sell Real Estate" or "Inspection Resolution" that you signed via DocuSign to your property folder in Dropbox.

Also, save the "Inspection Objection" that you withdrew to your property folder in Dropox overwriting the previous one.

You'll replace the "Amend/Extend" or "Inspection Resolution" with the copy signed by both you and the Seller once the Seller signs it.

Mark this task as complete when done.

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If you are unable to come to a resolution with the Seller over your inspection but you still want to purchase the property, you will need to withdraw your "Inspection Objection" prior to the Inspection Resolution Deadline.

Sign the withdrawal section of the "Inspection Objection" that your Real Estate Broker sends over via DocuSign.

Mark this task as complete when done.

Contract Deadline: Inspection Resolution DeadlineInspectionUltimate Nomad ChecklistWeek 10


After signing the withdrawal section of the "Inspection Objection" via DocuSign, save a copy of it to your property folder on Dropbox.

Mark this task as complete when done.

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The are some significant concerns to be aware of relating to the Inspection Resolution Deadline that could impact you getting your Earnest Money back. Let’s look at these in detail.

Contract to Buy and Sell Real Estate

This deadline relates to § 10.3 of the Contract to Buy and Sell Real Estate in Colorado.

Section 10.3

10.3. Inspection Resolution. If an Inspection Objection is received by Seller, on or before Inspection Objection Deadline (§ 3), and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline (§ 3), this Contract will terminate on Inspection Resolution Deadline (§ 3), unless Seller receives Buyer’s written withdrawal of the Inspection Objection before such termination, i.e., on or before expiration of Inspection Resolution Deadline (§ 3).

What We Often Use

What do I typically (or often) use for the Inspection Resolution Deadline in our Contract to Buy and Sell Real Estate?

Normally, I’ll use MEC + 13 Days.

That usually adds an additional 3 days after our Inspection Objection Deadline.

What Are We Doing

So, what are we typically doing during this period of time? Here’s the short list:

  • Negotiating Inspection Resolution for you – Often, we’re discussing the Inspection Resolution with the Seller’s agent and making the case as to why it is reasonable and why they should accept it. Or, in some cases, trying to uncover what some reasonable solutions to overcome the issues found during the inspection might be.
  • If you’re withdrawing your Inspection Objection: Prepare Inspection Objection for withdrawal – If you decide you’re not really going to terminate if the Sellers don’t agree to remedy your objection and you want to withdraw your Inspection Objection, we would prepare that for you to sign and deliver it before the Inspection Resolution Deadline to protect your Earnest Money.
  • If you’re terminating, we’d prepare the Notice to Terminate and Earnest Money Release forms – If you decide you not longer want to buy the property, we would prepare a Notice to Terminate and Earnest Money Release for you to sign and to deliver to the Seller.

What Are You Doing

Here’s typically what you’re doing between the Inspection Objection Deadline and Inspection Resolution Deadline:

Withdrawing Your Inspection Objection?

If you plan to withdrawn your Inspection Objection because you do want to purchase the property and have not come to a resolution yet with the Seller:

IMPORTANT NOTE: Please give us enough time to prepare these for you before your Inspection Resolution Deadline.

Terminating?

If you are unable or unwilling to come to an agreement with the Seller regarding your Inspection Objection and plan to terminate:

IMPORTANT NOTE: Please give us enough time to prepare these for you before your Inspection Resolution Deadline.

Tense Negotiation

Property Insurance Objection Deadline

inspection-and-due-diligence-property-insurance-objection-deadline

Often, after completing the Inspection Resolution Deadline, we move on to the Property Insurance Objection Deadline.

IMPORTANT NOTE: This checklist is based on what I personally use with clients in Northern Colorado and is based on the Colorado Real Estate Commission approved Contract to Buy and Sell Real Estate. Please rely on your local real estate agent for how it works in your local real estate market. This process will definitely vary in different States.

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