Why Doesn’t OREF 001 Penalize Delayed Inspection Responses?

Q: Why doesn’t OREF 001 – Residential Real Estate Sale Agreement include a specific penalty if a seller waits until near the inspection deadline to respond to a buyer’s repair request?

A: The OREF Forms Committees have discussed this issue several times and have consistently reached the same conclusion: adding a specific penalty to the Sale Agreement would not prevent a buyer or seller from intentionally delaying their response until the end of a contingency period. Contract language cannot, by itself, compel a party to act cooperatively or in good faith. Instead, disputes arising from a party’s conduct are addressed under the dispute resolution provisions in the Sale Agreement, along with any other rights or remedies available under Oregon law.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.