What happens when a buyer conducts a walk-through inspection the day before (or the day of) settlement, only to discover outstanding items the seller agreed, but failed, to repair?

 
This scenario creates an impediment to a smooth closing because lenders often do not allow a credit or escrow adjustment at closing. Providing for more than one walk-through inspection gives buyers the ability to check on the progress of work (or confirm the completion of work) as early as one week before settlement. This also preserves the standard and recommended practice of conducting a final walk-through the day before or morning of settlement. The seven-day walk-through period provides the buyer time to check on the progress of work and follow-up with the seller if work is incomplete, thereby allowing time for the parties to make alternative arrangements.

Commercial Council