Buyer’s Right to Inspect in the GAR Purchase and Sale Agreement & Temporary Occupancy Agreement

​A buyer’s right to inspect is covered in the GAR Purchase and Sale Agreement (PSA) in Section 8, page 3, Inspection and Due Diligence.  It is also included in the Temporary Occupancy Agreement (TOA).
 
The GAR Purchase and Sale Agreement allows buyers or their agents to enter the seller’s property to inspect, both during due diligence and after due diligence, right up until the day of closing.  Frequent, extended or unscheduled inspections can create friction between the parties.  Communication, cooperation and courtesy can win the day. 

​These are the rules.  For the exact language, see section 8 of the GAR Purchase and Sale Agreement.

• The buyers must give prior notice of the date and time of inspection to the sellers.
• Inspection times must be reasonable.
• The right to inspect includes inspections, surveys and evaluations, meeting contractors and vendors, measuring for renovations and confirming that any agreed upon repairs have been made and the Property otherwise remains in the same condition as it was on the offer date.
• If the property was built before 1978 and the parties agreed to a period to inspect for lead paint, the contract can be terminated by the buyer without penalty if lead is found during that period (unless this right has been waived in the Lead Based Paint Exhibit).
• Inspections are at the buyer’s expense.  If there is any damage to the property due to buyer’s inspection, the damage must be repaired at the buyer’s expense.
• The seller must make sure all systems are on so the inspection can be done.
• Access to attics, crawl spaces and any other blocked spaces must be cleared for inspections.
• Although it is not specifically stated in the contract, the number and frequency of inspections should also be reasonable.
• Buyer agrees to hold Seller and all Brokers harmless from all claims, injuries and damages relating to the exercise of the right to inspect.

 
The Temporary Occupancy Agreement (TOA) for sellers also includes a right to inspect, although the parties have changed roles.  The buyer is now an owner and the owner would like to know what’s happening in the property and whether the property is in the same condition as of the offer date.  The rules for inspection during a temporary occupancy are very much the same as before the closing.  This is the language in P. 9 of the GAR TOA.
 
9.         Upon prior notice to Seller, Buyer and/or Buyer’s representatives shall have the right to enter the Property at Buyer’s expense and at reasonable times to inspect, examine, survey, meet contractors and prepare for Buyer occupancy of Property. Seller shall cause all utilities, systems and equipment to be on so that Buyer may complete all inspections. Buyer agrees to hold Seller and all Brokers harmless from all claims, injuries and damages relating to the exercise of these rights and shall promptly restore any portion of the Property damaged or disturbed from testing or other evaluations to a condition equal to or better than the condition it was in prior to such testing or evaluation.
 
Buyers and sellers can be a bit on edge at inspection time. Follow the rules, including the communication, courtesy and cooperation one,  to avoid inspection troubles.