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Title 5 Failed: What Happens to the Sale

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A failed report does not void a sale on its own, but it does put the system on the critical path. From that point there are three normal routes.

RouteWhat happensTimeline
Seller repairsDesign, permit, construction before closing6 to 12 weeks
Escrow holdbackFunds held, buyer completes the work afterClosing proceeds
Price adjustmentBuyer takes the system as-is at a discountFastest

Which one is available depends on the local board of health and the buyer's lender. This is the reason to inspect before listing.

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