Improper Use of Home Inspection Clause


Who uses a home inspection as a negotiating tool?

Doing a deal, great offer, accepted, but now agent says he always tells his clients to make the offer,but then to use the inspection as a way to get the price lower!

Is this a thing? And why? What if it backfires and their client loses the deal?

The things they are going to ask a reduction for will be less than $1,500 total, but I’m sure they will ask for far more! I just think this goes against negotiating in a fair and honest manner.


Negotiations are complete. That was a tactic that was used before 13 November 2014. It’s long since gone!

Assume the Buyer pulls out for something less than $1,500.00 on a $1,500,000.00 deal. That’s 1/10th of 1%. That’s not going to fly. Your remedy as a Buyer would be to close the deal and sue for the $1,500.00 if that happened to be legitimate.

However, it’s actually great news if you are the Seller: don’t sign a mutual release, don’t give them their deposit back, get them to confirm that they are backing out. Sell for more money and keep their deposit. Sell for less and sue them for the difference.

This strategy engaged in by Buyer’s agents is a great indicator of complete and utter incompetence, an agent who is sadly out of date with the law.

Brian Madigan LL.B., Broker

Comments 2

    1. Post

      The option is up to the Seller.

      The Seller can simply accept this and leave the matter, and move on to another Buyer.

      Or, if the Seller believes that the waiver was not provided and this is due to bad faith on the part of the Buyer, then the could refuse to accept this decisiion. They could ask for a copy of the Home Inspection Report. The Buyer might refuse. But, if the Seller refuses to return the deposit, then a copy will likely be sent by the Buyer. Then, after looking at the Home Inspection report, are there sufficient reasons to walk away? If not, then the Seller can sue for the deposit annd damages.

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