Who pays for Inspection if deal falls through

Question

Hello, say that you have an offer accepted with an inspection contingency and hypothetical $2,000 in escrow. You pay $500 for a general inspection and figure out the deal will not work after the inspection and bids from contractors you choose to back out. Am I assuming correctly that You would get the $2,000 back that is in escrow but still be liable for the $500 you paid for the inspection and any additional inspections you choose to have?

Sabrina Sanchez · Answer

Hi Mason, I agree with the previous person. They buyer (at least here in Massachusetts) typically pays for the inspections unless an agreement was made with the seller. As far as the $2,000.00 back , typically if you had an inspection contingency and followed your duties within the realms of the inspection period then you should also get that back. I would refer to the contract you signed and if you are working with an attorney they would be able to spell this out for you as well.

Chris Seveney · Answer

@Mason Haley

Even if the house was a complete disaster you are still on hook for inspection and any other costs like an appraisal

Nathan Gesner · Answer

Buyer pays for any inspections or appraisal. If the deal falls through, you don't get reimbursed.

Bruce Woodruff · Answer

Yes, the buyer pays for all inspections. Why would the seller pay for them? They could have 20 prospective buyers get under contract and request an inspection. That's $10k.

Sergey A. Petrov · Answer

The buyer pays for the inspection and any other professionals they hire as part of their due diligence

Andrew Syrios · Answer

Everything is negotiable but it's the buyer who pays for inspections basically every time.

Wale Lawal · Answer

@Mason Haley

Unless negotiated and altered before 'Acceptance' of the contract, Buyers use this 5–7 day period to find a home inspector to perform a Home Inspection at their expense regardless of whether the deal flies or falls through. The buyer has the option to get a home inspection, at their own cost.

Connect with a local Investor-Agent as they can help shorten your learning curve and save you a lot of headaches as they tend to understand the market better.All the best!

Lien Vuong · Answer

Absolutely you would be responsible for that cost. It was a service that was rendered.

Eliott Elias · Answer

Inspection and option money is paid by the buyer and non refundable. If you fall under your option time your earnest will be refunded.

Theresa Harris · Answer

Under the scenario you outlined, you are correct.

Who pays for Inspection if deal falls through

Who pays for Inspection if deal falls through

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