1

I disclosed new defects to the buyer along with a inspector's estimate after he removed the inspection contingency. He wants to bring in his inspectors to inspect these defects. The new defects occurred after the inspection period. What's the general rule in this case, do I have to let them in?

Specifically, the contract states "Buyer has the right to conduct Buyer investigations of the property and, as specified in paragraph 14B, based upon information discovered in those investigations:" cancel or ask for repairs.

14B states "Buyer has 17 days after acceptance, unless otherwise agreed in writing, to (i) complete all buyer investigations...(2) requests any repairs...(3) Buyer shall send removal of contingency...(4) Buyer retains right to remove all contingencies or cancel agreement".

But it also states that (also Part of 14B) "(5) Access to Property: Buyer shall have access to the Property to conduct inspections and investigations for 17 days (expired) after acceptance, whether or not any part of the Buyer's Investigation contingency has been waived or removed".

Overall, do I need to let the inspectors in?

Country:USA

State: CA

Residential property

Side Note: The buyer has 3 or 5 days, starting with the delivery of the new disclosures, to cancel but the agent (dual) says that the buyer is asking for an inspection 7 days later which is essentially waiving those 3 or 5 days, right?

Edit: Only thing I find regarding adding additional disclosures and what it means for seller and buyer if it helps. "If any disclosure or notice specified in paragraph 10A or subsequent or amended disclosure or notice is delivered to the Buyer after the offer is signed, Buyer shall have the right to cancel this Agreement within 3 days after delivery in person or 5 days after delivery by deposit in the mail...by giving written notice of cancellation to seller or seller's agent." Paragraph 10A just talks about the disclosures at the beginning of the sale like lead-based paint, natural hazards etc.

Edit 2: This is an old example contract I found online that is 99% similar to mine. Only difference is the numbering/order. https://mrdaymude.com/wp-content/uploads/2012/06/CA-Standard-Form-Purchase-Agreement.pdf

7
  • This seems like it would depend on the rest of the contract, which we don't have (especially paragraph 14B). You should consult a lawyer to advise you on your situation.
    – Ryan M
    Feb 19 at 0:50
  • @RyanM Sorry. I've updated the details which includes 14B
    – user106526
    Feb 19 at 1:37
  • Did these "new defects" occur after the 17 day expiration, or were they existing prior to the buyer's inspection?
    – Ron Beyer
    Feb 19 at 2:29
  • @RonBeyer Yes they occurred after the 17 day expiration.
    – user106526
    Feb 19 at 2:58
  • 1
    This may be hard to determine without the full contract. Typically damage occurring during the closing period (between the inspection and close) is covered under other parts of the contract. You, as the seller, may be required to fix any material defects that have occurred after inspection but before closing to at least the standard at the time of the inspection. Again without reading the contract, it's not certain.
    – Ron Beyer
    Feb 19 at 3:07
1

Do I have to let Buyer in after disclosing new defects?

In line with Ryan M and Ron Beyer, reading the full contract is crucial for ascertaining whether the term "subsequent or amended disclosure" encompasses that of belated defects, especially where the inspection contingency had been removed or its deadline was expired by the time the defects occurred.

On the one hand, the belatedness of the defects themselves --rather than of the disclosure-- suggests that the contract is voidable by the buyer as the adversely affected party (I'm assuming that the new defects are material). See Restatement (Second) of Contracts at § 151-153. On the other hand, the scope of "subsequent or amended disclosure" might be tantamount to buyer bearing the risk of mistake "by agreement of the parties". Id at 154(a). This detail would determine whether buyer's prior acceptance is still binding, which in turn would indicate whether your reliance on the deadline of 3-5 days is valid.

1
  • The quoted language is statutory, not contractual. See the related question from the same poster, linked in my comment on the question. Feb 19 at 19:01

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.