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Members warn 10-day inspection window and 4% penalty could disrupt real estate contracts
Summary
A proposed change to real property law that would create a 10-day inspection window for residential sales and a penalty for noncompliance drew sustained criticism that it could derail rapid offers and harm market transactions; several senators said they would vote against the provision as written.
The committee examined a measure amending the real property law to create a statutory inspection period for residential transactions. Committee members raised concerns that imposing a mandatory 10-day inspection window and a penalty (described in the transcript as up to 4%) could interfere with fast-moving real estate contracts in hot markets.
Speakers described practical problems: in competitive listings that receive multiple offers, properties may be under contract within 24 hours, and a fixed statutory inspection window could force buyers or sellers to cancel deals or pay more. A committee member called the penalty “significant” in the context of six- and seven-figure home sales and urged more practical discussion about how the requirement would operate in standard real estate processes.
Another committee member indicated shared concerns and said they would vote against the bill as drafted. The committee moved the measure and recorded opposing votes (the transcript identifies at least two senators as voting no); the bill was reported to the court committee per the record.
The transcript does not supply implementing details such as exemptions for waived inspections or interplay with contractual waiver language; members urged further work to reconcile statutory mandates with established real estate contracting practices.
