What is the primary purpose of an "Inspection Addendum" in a real estate contract?

The primary purpose of an "Inspection Addendum" in a real estate contract is to outline the conditions and terms for property inspections. This addendum typically includes details regarding the timeframe for obtaining inspections, specifies who is responsible for paying for the inspections, and outlines any options the buyer may have if issues are discovered during the inspection process.

The provision of an Inspection Addendum is critical because it adds clarity to the contract regarding how inspections will be conducted, what happens if problems are found, and how those issues may influence the buyer's decision to proceed with the purchase. By clearly defining these terms, the inspection addendum protects both the buyer and the seller by ensuring that expectations are set and understood regarding the inspection process.

Understanding the role of the Inspection Addendum helps buyers feel secure about their investment and provides a framework for negotiations if the inspection reveals issues that need to be addressed.