Inspection Costs in New Listing Agreement

QUESTION: I noticed that section 16 of the new Exclusive Right to Sell Listing Agreement (Form 101) says that sellers must pay for all inspection costs related to selling the property. My experience in the past has been that the buyer covers their inspection costs. Does this paragraph obligate the seller to pay for the buyer’s inspection costs, or is it just stating that the seller is responsible for any inspections that they order themselves?

ANSWER: Paragraph 16 does not obligate the seller to pay the buyer’s inspection costs. This paragraph refers to any inspection costs and other professional services that the seller incurs, directs, or authorizes in connection with selling their property.

When the new version of Form 101 was introduced in January 2025, NC REALTORS® also published a summary of the changes. A copy is available here. The summary included the following explanation of the new paragraph 16:

¶ 16 – Inspection costs and professional fees incurred by Seller as part of selling the Property must be paid by Seller. NCR’s standard purchase contracts obligate the buyer to pay inspection costs incurred as part of Due Diligence, which are separate from this obligation. (emphasis added)

The listing agreement is a contract solely between the seller and listing firm. If a seller-client has questions about paragraph 16, you should point out that the buyer is not a party to the listing agreement, and that the paragraph does not bind the seller to pay for anything ordered by the buyer.

In contrast, the buyer will be a party to the Offer to Purchase and Contract (Form 2-T) which makes clear, in paragraph 4(b), that any tests, surveys, appraisals and inspections ordered by the buyer as part of their due diligence process are at the buyer’s expense unless agreed to otherwise by the seller.

Release Date: 4/3/2025

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