What Happens if the Property Does Not Pass the Inspection?

The seller will have to complete the list of required repairs and then schedule a re-inspection with the township (usually for an additional fee). If the seller is not able to make the required repairs in time before settlement, sometimes the buyer will allow:

• A Hold Harmless Agreement, in which the seller provides a credit to the buyer at settlement for the required municipal repairs, and the buyer assumes responsibility for completing the repairs and obtaining the final certificate from the municipality.
• An escrow account may be established to allow the repairs to be completed after settlement, with the responsibility remaining with the seller.

However, most repairs are pretty straightforward.