Inspection Period / Due Diligence Addendum
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Source: https://metrodealreport.com/templates/inspection-period-addendum
A standard addendum to a purchase agreement granting the buyer (typically the wholesaler) a defined inspection period during which the contract can be canceled and earnest money returned. The wholesaler's primary risk-management tool.

INSPECTION PERIOD / DUE DILIGENCE ADDENDUM

This Addendum is made part of the Purchase Agreement dated
____________________, between:

Buyer:    ____________________________
Seller:   ____________________________

For property at: ____________________________

1. INSPECTION PERIOD. Buyer shall have a period of ____ calendar
days from the Effective Date (the "Inspection Period") to conduct
any inspections, investigations, due diligence, title review, and
feasibility analysis Buyer deems appropriate.

2. RIGHT TO CANCEL. At any time during the Inspection Period,
Buyer may, in Buyer's sole and absolute discretion and for any
reason or no reason, terminate this Purchase Agreement by
delivering written notice of termination to Seller and to the
escrow holder.

3. RETURN OF EARNEST MONEY. Upon timely cancellation by Buyer
during the Inspection Period, the escrow holder shall return
ALL earnest money deposits to Buyer within 5 business days,
without offset, deduction, or requirement of Seller's signature
on the release.

4. NO DEFAULT. Buyer's exercise of the right to cancel during
the Inspection Period shall not constitute a default and shall
relieve Buyer of any further obligation under the Purchase
Agreement.

5. EXTENSION (OPTIONAL). The Inspection Period may be extended
by mutual written agreement of Buyer and Seller. If extension is
not granted in writing, the Inspection Period expires at 11:59
PM local time on the final day.

6. ACCESS. Seller shall provide Buyer reasonable access to the
property during the Inspection Period for Buyer's inspections,
inspector visits, and any walkthroughs Buyer arranges with
potential assignees.

7. NOTICE METHOD. Notice of cancellation must be in writing and
delivered by email (to the email address(es) listed in the
Purchase Agreement) AND by either physical delivery, certified
mail, or courier service.

Buyer:                                  Seller:
________________________________        ________________________________
Signature                               Signature

________________________________        ________________________________
Printed Name                            Printed Name

Date: ___________________               Date: ___________________

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WARNINGS:
  - Some states have specific requirements for inspection-period addendums (notice methods, minimum periods). Verify state-specific rules.
  - Sellers will sometimes push back hard on long inspection periods (14+ days). Negotiate, but never go below 7 days — that's not enough time to find an end buyer.
  - ALWAYS deliver cancellation notice in writing to BOTH the seller AND the escrow holder before the deadline. Verbal cancellation does not protect your earnest money.

This template is provided as-is, for educational purposes only.
Always have a licensed attorney in your state adapt before use.

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