Inspection Period: A Seller’s Perspective

What the Inspection Period Is

The inspection period is a defined timeframe established in the accepted purchase contract when the buyer may evaluate the condition of the property. During this window, the buyer may conduct inspections and decide whether to proceed, renegotiate, or terminate based on inspection findings.

Once the inspection period expires—or the buyer releases it in writing—the buyer’s inspection-related rights largely end.

What Buyers Are Allowed to Inspect

Buyers control the scope of inspections, subject to reasonable access. Common inspections include:

• General home inspection
• Roof inspection
• HVAC, plumbing, and electrical evaluations
• Foundation or structural inspection
• Sewer line or septic inspection
• Well and water quality testing (if applicable)
• Specialty or environmental inspections (as permitted)

Sellers do not choose the inspectors and are not responsible for inspection costs.

Seller Obligations During the Inspection Period

After acceptance, sellers have contractual obligations related to inspections:

• Provide reasonable access for scheduled inspections
• Maintain the property in substantially the same condition
• Do not interfere with inspections
• Disclose newly discovered material issues if they arise

Importantly, sellers are not automatically required to make repairs. Repair obligations only arise if agreed to later in writing.

The Role of the RE-10 Inspection Contingency Notice

In Idaho, inspection negotiations are not informal conversations. They are governed by the RE-10 Inspection Contingency Notice.

The RE-10 is the buyer’s formal, written notice that communicates what they are doing as a result of inspections. It must be delivered within the inspection period to be effective. 

What the Buyer Can Do Using the RE-10

The RE-10 gives the buyer structured options. Typically, the buyer may:

• Accept the property as-is and proceed
• Request repairs
• Request credits or price adjustments
• Propose alternative resolutions
• Terminate the contract within inspection rights

Inspection reports themselves do not change the contract. Only the RE-10 (and any agreed amendments) does.

Seller Options After Receiving an RE-10

Once a seller receives an RE-10, the seller must decide how to respond within the contract timelines. Common seller responses include:

1) Agree to the Buyer’s Request

Sellers may agree to requested repairs, credits, or adjustments when the request is reasonable and supports closing certainty.

2) Make a Counter Proposal

Sellers may counter inspection requests by offering partial repairs, capped credits, or alternative solutions. This keeps negotiations controlled and documented.

3) Decline the Request

Sellers are allowed to decline inspection requests. In this case, the buyer must decide whether to proceed as-is or terminate within their inspection rights.

Repairs vs. Credits: Seller Considerations

Many sellers prefer credits over physical repairs. Key tradeoffs include:

• Repairs: timing risk, workmanship disputes, and re-inspections
• Credits: cleaner execution and faster closing
• Price reductions: may affect appraisal and lender approval

The right approach depends on the buyer’s loan type, timelines, and leverage.

What Happens If No Agreement Is Reached

If inspection negotiations fail and the buyer is still within the inspection contingency period, the buyer may terminate the contract under the RE-10.

Once inspection rights expire, the buyer generally loses the ability to renegotiate or cancel based on inspection issues.

Common Seller Mistakes During the Inspection Period

• Overreacting to inspection reports
• Treating inspection reports as repair mandates
• Missing response deadlines
• Agreeing to repairs without written documentation
• Letting emotion override strategy

How This Fits Into the Seller Process

1. Offer is accepted
2. Inspection period begins
3. Buyer conducts inspections
4. Buyer submits RE-10 Inspection Contingency Notice
5. Seller responds or negotiates
6. Inspection period expires or is resolved
7. Transaction moves toward appraisal and financing