What to do About Inspection Delays Caused by Seller

Question

I represent the Buyer in a transaction.  My Buyer is currently under contract to purchase a home and I’m trying to help coordinate/complete inspections of the property.

As soon as we went under contract, we requested dates to conduct inspections.  It took the Seller seven (7) days before he finally responded with an inspection date.

We show up for the inspections on the date provided by the Seller and the electricity and water are turned off.

Obviously, my Buyer is very frustrated.  But my Buyer really wants this house!

The Due Diligence Period is about to expire.

What do I do???

Answer

The first thing you might consider is leaning on the Seller to get utilities turned back on ASAP so your Buyer can complete inspections.

To do this, you can point out to the Listing Agent that the Seller is contractually obligated to provide utilities for your Buyer to complete inspections.

Please see Lines 170-171 of the Purchase Agreement wherein the following is stated:

The Seller agrees to provide the utilities for inspections and immediate access. 

You can also let the Listing Agent know that the Seller is only hurting himself, because the longer he delays in getting utilities turned on the longer the inspection period will drag out!

Please see Lines 171-173 of the Purchase Agreement wherein the following is stated:

Inspection period will be extended by the same number of days that the Buyer is not granted immediate access to the property or all utilities are not provided by the Seller.

According to the fact scenario above, the Seller has already extended the Due Diligence Period an extra seven (7) days by waiting seven (7) days before providing the Buyer with a date to conduct inspections.  How many more days does the Seller want to extend the Due Diligence Period by not having utilities turned on???!!!

(As a side note, if the Seller refuses to pay to have utilities turned on, your Buyer could consider having them turned on at his/her expense to complete inspections).

Even though the Purchase Agreement appears to have an automatic extension of the Due Diligence Period built in when the Seller delays in providing inspections dates and/or refuses to provide utilities, you don’t want to assume anything!

Instead, it is highly recommended that before the original Due Diligence Period expires, that you get an extension of the Due Diligence signed by all parties.  The reasons listed in the extension will be the Seller’s delay in providing inspection dates and the fact t