Understanding The Impact Of Inspection Findings
You scheduled the home inspection, expecting maybe a few minor repairs. Instead, the report comes back with foundation cracks, a failing roof, or electrical work that isn’t up to code. It’s frustrating. At Silverman Law Office, PLLC, we’ve seen this scenario play out dozens of times, and we help Montana buyers and sellers figure out what comes next when inspections reveal problems nobody anticipated.
Does a bad inspection mean your deal’s dead? Not necessarily. But it does mean you’ve reached a decision point where both parties need to think carefully about their next move.
Your Options As A Buyer
When serious issues show up during inspection, you’ve got choices. What you can do depends largely on what’s written in your purchase agreement and whether you included inspection contingencies. Most purchase agreements give you a window to review the inspection results and decide how to respond. That window’s usually short. During this period, you can:
- Ask the seller to fix the problems before closing
- Request a price reduction to cover what repairs will cost
- Negotiate a closing credit so you can handle fixes yourself after purchase
- Walk away completely if your contract allows it
A Kalispell Property Lawyer can review your specific contract to figure out which options you actually have. They’ll also help you negotiate with the seller in a way that protects your interests without blowing up the deal unnecessarily.
The Seller’s Perspective
Sellers don’t exactly celebrate when inspection reports reveal problems they didn’t know existed. Montana law says you’ve got to disclose known defects, but you’re not on the hook for issues you genuinely weren’t aware of before.
Once those inspection results land, you’re making decisions. Will you handle the requested repairs? Offer money off the sale price? Stand your ground and risk losing this buyer? Some defects are easy fixes. Others require thousands of dollars that might not make sense given what you’re selling the property for. We help sellers understand what they’re legally required to disclose and how to negotiate solutions that don’t leave them exposed to liability down the road.
Disclosure Requirements Under Montana Law
Montana’s generally a “buyer beware” state when it comes to real estate, but that doesn’t mean sellers can hide problems. According to Montana Code Annotated § 70-20-317, you’re required to disclose material facts about the property that could affect its value or make someone not want to buy it. Things like structural damage, water intrusion, environmental hazards, and problems with major systems like heating or plumbing are all considered material. If you knew your foundation had issues before you listed the house and didn’t say anything, you could face legal consequences even after the sale closes. The line between what must be disclosed and what doesn’t isn’t always obvious. We work with sellers to navigate these requirements so they don’t end up in disputes months or years after closing.
When Inspection Contingencies Protect You
Smart buyers put inspection contingencies in their purchase agreements. These clauses are your safety net. They give you the right to back out if the inspection reveals problems you’re not willing to deal with. The contingency period moves fast. You’re often looking at just seven to ten days after getting the inspection report. You need to review the findings, maybe get some repair estimates, and communicate your position to the seller through proper channels. Miss these deadlines? You could lose your earnest money or find yourself stuck buying a house you don’t want anymore. A Kalispell Property Lawyer helps you stay on top of these timelines and protects your deposit if you decide to walk away.
Negotiating Repairs Vs. Price Reductions
When sellers handle repairs before closing, the work’s done by the time you move in. That’s reassuring. But you don’t control which contractor they hire or how thoroughly the work gets completed. Price reductions put you in the driver’s seat, but now you’re managing contractors and dealing with repairs after you’ve already closed. We help clients think through these options based on what the inspection actually found, current market conditions, and how motivated both parties are to make the sale happen.
Inspection issues don’t have to kill your Montana real estate transaction. They’re just obstacles that need addressing. With proper legal guidance and honest communication, most problems can be resolved in ways that work for everyone. Our team knows Montana real estate law inside and out, and we can help you protect your interests when inspections reveal the unexpected. Contact us to discuss your situation and explore what options make sense for you.