🛠️ How to Represent a Buyer Wanting the Right to Cancel but Expecting Repairs
The Purpose and Intent Clearly Communicated to a Seller
Let’s say it clearly:
The “As Is Right to Inspect and Cancel” contract is not a license to bait-and-switch.
It gives buyers a legal right to walk away for any reason during the inspection period. But it’s also frequently misused—often at the seller’s expense.
So what happens when a buyer legitimately wants:
✅ A chance to cancel if they find something unexpected, and
🧰 Working appliances and systems if they decide to move forward?
There’s a right way to do that.
It’s called Addendum L to the FAR/BAR contract.
🔍 The Buyer’s Mindset: Reasonable and Strategic
Buyers often say:
“I just want to be sure there’s nothing major wrong with the home.”
“If everything looks fine, I still expect things to work—HVAC, plumbing, kitchen.”
Totally fair. But using the wrong contract language—or hiding intent—creates confusion and distrust.
That’s why Addendum L exists:
To bridge the gap between walk-away flexibility and reasonable repair expectations.
📄 How Addendum L Works in Two Stages
➊ Stage One: Inspection + Right to Cancel.
The buyer gets a window (typically 10–15 days) to inspect the home and cancel for any reason—this includes:
Mold or water intrusion
Roof nearing collapse
Structural problems
Anything that makes them uncomfortable
🛑 This is a clean exit point—no explanation required.
➋ Stage Two: Repair Obligations + Closing Path
If the buyer does not cancel, the deal shifts to a repair-driven structure:
Seller is responsible for certain repairs: major systems, appliances, plumbing, etc.
A repair limit applies (e.g., $5,000).
If repairs exceed the limit, this triggers a negotiation—not cancellation.
🔑 The seller can unilaterally choose to make all repairs and force the deal to continue.
We will go over more inspection clauses and methods in posts coming soon to this substack
🤝 Why This Is Smart for the Buyer
Peace of mind during the inspection window
Ability to walk early if something big pops up
Defined expectations for repair after that window
No awkward “ask for a credit or walk” drama
Transparent, professional structure
🧩 Why This Is Fair for the Seller
Even though Addendum L starts with a buyer-controlled window, the control shifts after that:
Once the buyer elects to proceed, the seller regains leverage
If repairs are needed, the seller can decide to fix them
The seller isn’t stuck negotiating from a weak position late in the game
The buyer can’t just walk over a broken stove or AC unit—because those fall under the repair clause
📌 It’s not a cancellation clause at that point. It’s a repair path.
📢 What Matters Most: COMMUNICATION
🗣️ Tell the listing agent the plan. Tell the seller the plan.
“Our buyer is using Addendum L.
They’ll cancel early if something big shows up.
Otherwise, they expect working systems—and will proceed under the repair terms.”
That kind of honesty builds trust.
And deals that start with trust? Yep, you also then create goodwill through the agents between the buyer and seller…..and this way if something comes up, the deal probably holds together because it started with Honesty and Trust.
They close smoother, with fewer surprises.
🧭 The Takeaway
Addendum L is not just a contract clause.
It’s a map—through uncertainty, toward clarity, with mutual respect.
If your buyer wants the right to cancel and the comfort of working systems, this is the tool.
And when presented clearly, it works for everyone.
📬 Subscribe for More Strategy—Without the Fluff
I don’t write these to farm clicks.
I write them so real estate can be done better.
Follow along if you want more real-world takes on how to write contracts that close and protect everyone involved. Follow for more.