In October of last year, the Maryland REALTORS® made changes to how property inspections are handled within the state contract of sale. The new process calls for property inspections to either be activated or waived in the contract—and if activated, the traditional “As-Is” option was removed. 

Agents throughout the state have been adjusting to the new method, and with a continued sellers’ market, there are still numerous times waiving of home inspections is chosen—mostly for a buyer’s offer to be more competitive and attractive to the seller when there’s a multiple offer situation. But when inspections aren’t waived completely, the new home inspection addendum now allows for buyers to back out of an offer with the Right to Terminate clause worded exactly:

                        RIGHT TO TERMINATE: If the results of an inspection are unsatisfactory to the Buyer, Buyer may terminate the Contract of Sale by                         delivering a Unilateral Notice of Termination Under Contract of Sale to Seller by the Deadline. Buyer is not required to specify the basis of                         Buyer’s dissatisfaction. Buyer’s right to terminate the Contract of Sale as stated in this subsection expires at the Deadline.

However, if the buyer decides to request the seller make repairs to the property, the right to terminate clause is voided—and the buyer decides instead to move forward in the contract of sale with the repair process, worded as follows:

                        RIGHT TO NEGOTIATE: Instead of exercising the Right to Terminate the Contract of Sale in accordance with subparagraph 1.B(i), Buyer                         may make a single, written request for repairs and/or a Seller Credit based upon Buyer’s dissatisfaction with the results of the agreed-                          upon inspection(s). This right will expire at the Deadline unless the Buyer delivers to Seller a copy of the inspection report(s) together with                         a written request that Seller make certain repairs, and/or agree to provide a Seller Credit. The parties acknowledge that Buyer’s lender                         may need to approve any agreed-upon Seller Credit. Should Buyer attempt to deliver multiple written requests for repairs and/or Seller                         Credit to Seller prior to the Deadline, Seller shall only be obligated to consider the first such request received.

Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.