Home Inspection Conditions and Timing the Amendment

Reading Time: 5 minutes

There’s no condition in residential real estate quite like the home inspection.

More than the financing or status conditions, the home inspection can set up a second step: the amendment.

I see it enough in today’s market.

And it’s a powerful negotiating strategy.

But to pull it off effectively, you need to understand the contract law mechanics behind it.

Let’s use an example:

An APS is accepted with a 7-day home inspection condition.

The inspection is done on Day 4.

The report reveals a problem the buyer isn’t satisfied with.

If the clause is drafted as a condition precedent, it will say something like:

Unless the Buyer gives notice in writing delivered to the Seller not later than [DATE/TIME] that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full.

That means the deal will be null and void by Day 7 unless the buyer takes positive action (fulfill, waive, or amend).

The home inspection condition is the buyer’s leverage.

And that leverage usually takes one of two forms:

• Price Reduction
  Amendment deletes the condition and original price, and inserts a lower price in exchange for firming up.
• Repairs Required
  Amendment deletes the condition and inserts a clause requiring the seller to complete specific repairs, with proof, by a set timeline.

But remember: an amendment isn’t like a NOF or a Waiver.

It’s not unilateral. It’s an offer within the offer. It requires:

• Consent from both sides, and
• an irrevocable period

And that’s where timing becomes critical.

Sometimes I see amendments where the irrevocable matches the expiry of the inspection condition.

The problem?

At midnight on Day 7, the APS becomes null and void if the condition isn’t fulfilled.

But the amendment — your buyer’s “offer within the offer” — is still open until that same time.

Which means the buyer could lose the entire deal before knowing if the seller accepted the amendment.

It leaves a game of “chicken” between the parties that could have been avoided.

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So here’s the balance you need to strike when setting the irrevocable:

• Enough time for the seller to review, verify, and negotiate, if necessary.
• But still enough time left on the inspection condition for the buyer to make a final call — move forward or walk away.

That’s the tightrope.

Handled well, the buyer keeps their leverage without killing the deal.

Handled poorly, you box your client into a corner.