What This Guide Covers

• A buyer-friendly summary of how inspection contingencies work in Alabama

• The negotiation sequence and where addendums fit

• Timelines, deadlines, and how to avoid “gray areas”

• Two practical examples (broken window, hot water heater)

• Templates you can copy into your addendums

• Common pitfalls I see on the coast and how to prevent them

The Process in Plain English

1. Your Inspection Window
   Most Alabama contracts give you 10 business days to complete inspections and due diligence. Use licensed pros to evaluate roof, structure, plumbing, electrical, windows, doors, appliances, pools, docks, and more.

2. Notify in Writing
   If you find problems, send a written notice before your deadline. You can request repairs, a credit, or simply flag dissatisfaction while you investigate further.

3. Seller’s Response Options
   The seller may:

   • Agree to your requests,

   • Decline, or

   • Counter (e.g., repair one item but not the other, or offer a credit).

4. Addendums Close the Loop
   The contingency stays open until both parties sign an addendum resolving the requests. Once signed, the inspection contingency is satisfied/removed.

5. If the Seller Doesn’t Respond
   You’ve still given notice of dissatisfaction. Practically, the contingency can remain open until closing unless the parties clarify it with another addendum.

6. At Closing
   Alabama contracts typically require major systems (plumbing, electrical, water heaters, appliances, HVAC) to be in working order at closing, even if not separately listed in an addendum.

Real-World Lessons (What I See Most Often)

Requests vs. Responses

• Buyer asks for two items. Seller answers only one and writes “all other terms remain the same.”

• Translation: vague language can sidestep the second item. If it matters, it must be explicit in the signed addendum.

Addendum Ambiguity

• Phrases like “all other terms remain the same” can refer to the original contract or prior addendums.

• If a needed repair isn’t spelled out, it’s not guaranteed.

When It’s “Open”

• If you’ve noticed issues in writing and the seller counters (or stays silent), the contingency remains open. You can continue negotiating until both sides sign.

Deadlines Matter

• Watch for AM/PM on response deadlines. If unchecked, clarify in writing.

• If the seller sets a deadline but you’re still negotiating addendums, you have not waived your contingency unless you’ve agreed in writing.

Two Practical Examples

Example 1: Broken Window

• Issue: Living room window has a cracked pane and inoperable latch.

• Buyer Request: “Seller to repair or replace damaged window (cracked pane and latch) by a licensed professional prior to closing, and provide paid invoice.”

• Seller Counter: Offers a closing credit instead of repair.

• What to Know: Until both sides sign, the contingency remains open. If you prefer the repair over a credit, state that clearly and keep negotiating.

Example 2: Hot Water Heater Not Heating Properly

• Issue: Water heater not reaching temperature; service recommended.

• Buyer Request: “Seller to have the water heater serviced by a licensed plumber prior to closing; unit to produce consistent hot water within manufacturer specs; paid invoice to buyer.”

• Seller Reply: “We’ll take care of it; all other terms remain the same.”

• What to Know: If their wording omits the water heater or lacks specifics, ask for an explicit addendum with scope, standard, and proof of completion.

Templates You Can Use

A. Clear Repair Language

“Seller agrees to repair or replace the [item/area] (issue: [describe]) using a licensed [trade]. Work to comply with manufacturer specifications and applicable code. Seller to provide a paid invoice and, if available, a transferable warranty to Buyer no later than [date/time, incl. AM/PM].”

B. Service-and-Verify Language (Water Heater, Appliances, HVAC, etc.)

“Seller agrees to have the [system] serviced by a licensed [trade]. System to be fully operable and performing within manufacturer specifications at final walkthrough and closing. Seller to provide paid invoice by [date/time].”

C. Close-the-Loop Language (When Resolution Is Reached)

“Buyer and Seller agree that the inspection contingency is satisfied solely by the terms herein. No further inspection-related requests remain unless a new deficiency arises prior to closing.”

D. If You Need Time (No Waiver Intended)

“The parties acknowledge inspection negotiations are ongoing. This addendum does not waive the inspection contingency. All timelines remain in effect until a mutually executed resolution is signed.”

Timeline & Checklist

Within Your 10-Business-Day Window

• Schedule general inspection plus specialists as needed (roof, structural, pool, dock, electrical, plumbing).

• Review for higher-impact flags (e.g., polybutylene supply lines, aluminum branch wiring, WDO, roofing age, elevation, drainage).

• Send written notice of dissatisfaction and specific requests before your deadline.

• Clarify AM/PM on every due date.

• Keep the contingency open until you have a signed addendum.

Before Final Walkthrough

• Request paid invoices and permits (if applicable).

• Confirm repairs are complete and items are operable.

• If anything is incomplete, address it with a short addendum or escrow hold agreement.

Common Pitfalls to Avoid

• Vague phrasing. “All other terms remain the same” can create gaps. Spell out each repair.

• Un-checked times. Always state date and AM/PM for deadlines and completion.

• Assuming coverage. “Major systems in working order at closing” is helpful, but don’t rely on it to fix specific items you want addressed now.

• No paper trail. Verbal agreements aren’t enough. Put it in a signed addendum.

• Assistant-drafted ambiguity. If something reads off, revise it. Precision prevents disputes.

• Insurance and specialty risks left for later. If you discover issues that affect insurability or coverage (for example, polybutylene piping), address them during the inspection window and document your position in writing.

Quick Q&A

Q: Can we add new items after we’ve signed an inspection addendum?
A: Generally, no. Once both parties sign the resolution, the contingency is considered satisfied. New items usually require new negotiations or a newly discovered issue.

Q: What if the seller never responds to my notice?
A: You’ve still preserved your contingency by giving timely written notice. In practice, the issue can remain open until closing unless clarified by a subsequent addendum.

Q: Do sellers have to warranty repairs after closing?
A: Not by default. If post-closing warranties matter to you, include that requirement in the addendum or request transferable warranties where available.

Final Take