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As a buyer or seller, you need to understand inspections and how they affect your contract. In this article, I'll try to add, at least a macro level, some structure around the process.

First: In real estate some words are over used or used multiple times in different context, like contingency and title. Likewise, the word "Inspections" can have a couple meanings depending on context.

There are two main types of inspections in a typical Illinois residential real estate transaction. Understanding both is important for buyers and sellers.

City Occupancy Inspections

These inspections are required by the city or municipality and must be completed and passed before a buyer can legally occupy the home after closing.They typically cover electrical, plumbing, structure, and sometimes HVAC or other safety systems.

The city inspector identifies any code violations or safety issues.

All issues must be resolved (which may require a re-inspection) before the city issues an occupancy permit.
The buyer applies for occupancy after the sale is complete.

Who pays? The seller usually pays for the initial city occupancy inspection and any re-inspections before closing. If additional fees are required after closing, the buyer is typically responsible.

Home Inspections (Buyer's Choice)

Under the standard "Contract to Purchase Residential Real Estate" used in Illinois, the buyer has the right to inspect any portion of the property at their own expense during the inspection contingency period.

Common inspections include:
Full home inspection by a licensed home inspector
Sewer line scope (camera inspection)
Radon testing
Termite/wood-destroying insect inspection
Well/septic inspection (if applicable)
Other specialized checks (mold, chimney, roof, foundation, etc.)

The buyer decides what inspections are needed and pays for them. Sellers must make the property reasonably available for inspections during the agreed timeframe.

Who pays? The buyer pays 100%. These are optional and at the buyer's discretion.

What Happens After a Home Inspection?

After the buyer receives the inspection report(s), they review the findings with their real estate agent. Reports can be lengthy and list every observed condition, even minor or cosmetic items, which can feel overwhelming at first.

The buyer then decides whether to:
Accept the property as-is (no requests)
Request repairs or credits for specific issues
Terminate the contract (if within the contingency period and allowed by the contract)

If requests are made, the buyer's agent prepares an Inspection Response document.

Example:"Back window lock is not functioning properly. See Inspection Report Item 4.5. Please repair."The seller then has options:
Agree to repair — fixes the issue(s) at their expense.
Reject — refuses the request (buyer may then accept as-is or terminate).
Counter — offer partial repair, credit at closing, or other compromise (e.g., "$50 toward closing costs" for a simple lock repair).

Both parties must reach a written agreement within the time frame specified in the contract (usually 10 days after the Inspection Response is delivered). If no agreement is reached, either party may terminate (subject to contract terms).Key Excerpt from the Contract (Paragraph 11 – Property Inspection Contingency)The standard Illinois residential contract includes important language about inspections.

Here are the key points:
- The property is sold "AS IS" with no warranties, but visible conditions should be considered in the price or addressed in the contract.
- Buyers are encouraged to inspect carefully or hire professionals. Agents are not experts in structural/environmental issues.
- Minor repairs, routine maintenance, cosmetic items (painting, decorating), etc., do not count as defects.
- Buyers must deliver an Inspection Response within the time frame (usually 20 days after effective date or 10 days before closing, whichever is earlier).
- If defects are found, parties have time to negotiate repairs, credits, or termination.
Environmental or structural defects have special rules (e.g., remediation options, escrow for repairs).

For the full contract language, refer to Paragraph 11 of your specific Contract to Purchase Residential Real Estate.Questions or Concerns?

Inspections can feel complicated, but they protect both buyers and sellers. Talk to your real estate agent for guidance specific to your transaction. If you have questions about the process or want to discuss a particular inspection report, feel free to reach out.

Feel free to share your own inspection experiences or ask questions below. Let's help each other navigate this part of the process!

George Sykes
Managing Broker
Worth Clark Realty
618-531-4000