NWMLS Form 35 (Inspection Addendum) is the standard vehicle for inspection contingencies in Washington residential transactions. Under Form 35, the buyer has a specified number of days (typically 10 business days, though the parties negotiate this) to complete all inspections they choose to conduct.
Inspections may include:
When the buyer receives inspection results, they have three choices:
1. Accept the property as-is — remove the inspection contingency and proceed to closing 2. Submit an Inspection Notice — identify specific defects and request that the seller repair, provide a credit, or reduce the price 3. Terminate the agreement — demand return of the earnest money
The buyer's right to terminate during the inspection period is unconditional. The buyer does not need to identify specific defects to exercise this right — they may simply decide not to proceed. This is sometimes called the "free look" period.
If the buyer submits an Inspection Notice requesting repairs or credits, the seller has three responses: 1. Agree to all requests 2. Counter with a different resolution (partial repairs, different credit amount) 3. Decline and offer the property as-is
If the seller declines, the buyer must then choose: accept the property as-is or terminate and recover earnest money. This negotiation typically occurs within a short time window and requires prompt communication.
"As-is" provisions in Washington purchase agreements do NOT:
"As-is" means only that the seller will not make repairs or provide credits. The buyer retains all statutory rights unless they specifically waive them.
Real-world example: A buyer makes an offer on a Seattle fixer-upper with a 15-business-day inspection period. The general home inspection reveals the roof needs immediate replacement ($18,000 cost). The buyer has options: (1) submit an Inspection Notice requesting a $15,000 closing credit; (2) terminate the agreement using the unconditional termination right and get their earnest money back; or (3) accept the roof condition as-is (perhaps they planned to replace it anyway). They choose to negotiate and submit an Inspection Notice. The seller offers a $10,000 credit. The buyer accepts.
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Quiz Questions:
Q1. A Washington buyer's inspection reveals the home has original 1970s knob-and-tube wiring throughout. The buyer's inspector says it's not currently dangerous but will need replacement eventually. The inspection period expires in 2 days. The buyer is unsure whether to proceed. What is the buyer's right?
A) The buyer must proceed because the defect is not currently dangerous B) The buyer may terminate the agreement unconditionally during the inspection period, regardless of the reason, and recover earnest money C) The buyer may only terminate if the defect constitutes a health or safety hazard D) The buyer must request a price reduction before being permitted to terminate
Answer: B — During the inspection period, the buyer's right to terminate is unconditional. They do not need to justify the decision or prove the defect is dangerous. Simply deciding not to proceed is sufficient — the earnest money is returned.
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Q2. A buyer submits an Inspection Notice requesting that the seller replace the water heater (estimated $1,200) and provide a $5,000 credit for deferred maintenance. The seller responds by offering only a $2,000 credit for everything. What are the buyer's options?
A) The buyer must accept the seller's counter because they already submitted the Inspection Notice, waiving termination rights B) The buyer may accept the seller's counter, negotiate further, or terminate the agreement and recover earnest money C) The buyer may only accept or reject the seller's exact terms; no further negotiation is possible D) The transaction automatically terminates if the seller does not meet the buyer's requests
Answer: B — After receiving the seller's counter, the buyer can accept the counter, make a further counter-proposal, or terminate. Submitting an Inspection Notice does not waive the termination right if the parties cannot reach an agreement during the inspection period.
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Q3. A Washington purchase agreement includes an "as-is" clause. The listing broker knows the basement floods seasonally but says nothing because "the seller wants to sell as-is." Is this appropriate?
A) Yes, the as-is clause allows the seller and agent to withhold information about defects B) No, the as-is clause does not eliminate the broker's independent duty under RCW 18.86 to disclose material defects they actually know about C) Yes, because the buyer has the opportunity to conduct an inspection and discover the flooding themselves D) No, but the broker only needs to disclose if the buyer specifically asks about basement flooding
Answer: B — An as-is clause is a seller's decision not to make repairs — it is not a license to conceal known material defects. The broker's independent disclosure duty under RCW 18.86 requires disclosing actually known material defects to all parties, regardless of any as-is provision.
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Q4. A Washington buyer waives the inspection contingency entirely in their offer (a common strategy in competitive markets). After closing, the buyer discovers significant termite damage. What is the buyer's situation?
A) The buyer's waiver of the inspection contingency is void because Washington requires home inspections B) The buyer has limited recourse; by waiving the inspection contingency, they accepted the risk of undisclosed conditions — though fraud claims may survive if the seller intentionally concealed the damage C) The seller must compensate the buyer because Form 17 covers termite damage D) The buyer can terminate the purchase after closing if damages exceed $10,000
Answer: B — Waiving the inspection contingency is a legitimate choice but comes with risk. The buyer accepted the property without inspection. Their recourse is limited to claims of fraud or misrepresentation (if the seller intentionally concealed the termite damage) — they cannot simply undo the purchase based on conditions they chose not to inspect.
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Q5. Under NWMLS Form 35, what is the default inspection period duration typically used in Washington transactions?
A) 5 calendar days B) 3 business days C) 10 business days D) 21 calendar days
Answer: C — The standard inspection period under NWMLS Form 35 is typically 10 business days, though the parties negotiate the exact duration. Business days (excluding weekends and holidays) give the buyer meaningful time to schedule inspectors and review results.