Why We May Be Seeing Big Changes to Buyers’ Inspection Rights

The Upstate market is busy and competitive and—if the latest conversations are any indication—on the brink of a contractual shift that could reshape how buyers and sellers handle inspections. In a recent episode of Selling Greenville, the host walks through how South Carolina’s most-used residential purchase agreement, SCR Form 310, really works today—and why the industry may soon move away from a long-standing “middle ground” known as Repair Procedure. The discussion is grounded in what’s actually happening in Greenville, Spartanburg, Anderson, and surrounding markets, and it zeroes in on how buyers’ inspection rights could change in the months ahead.

Big Changes to Buyers’ Inspection Rights

The phrase “big changes to buyers’ inspection rights” is not hyperbole. South Carolina REALTORS® are actively debating whether to eliminate the Repair Procedure option from Form 310—the standard agreement used on most residential transactions in the Upstate (new construction builder contracts are a common exception). If the repair procedure is removed, the form would largely leave buyers and sellers with two starkly different paths: as-is or due diligence.

Here’s what those choices mean right now—and why the middle box may be on the chopping block.

The three boxes on Form 310 (and why one may disappear)

Form 310 gives agents three inspection/repair frameworks. One must be selected:

1. As-is sellers love this one. Buyers can still inspect with a licensed inspector, but the contract is not contingent on inspection results. If the buyer discovers something ugly and backs out, the earnest money is typically at risk unless another contractual out applies.

2. Due Diligence: This is the buyer-friendly end of the spectrum. During the due diligence window, buyers may terminate for any reason (or no reason) and reclaim earnest money per the form’s rules. It’s commonly used for properties needing research or work—investment purchases, complex records, lease reviews, and the like.

3. Repair Procedure: The “middle ground.” Buyers inspect with a licensed inspector and may request repairs, but sellers are only obligated to address items in nine narrow categories (e.g., certain safety or system issues). The language leaves little room for gray—and a lot of room for conflict.

According to the episode, the South Carolina Association of REALTORS® discussed removing the Repair Procedure last year, tabled it, and plans to revisit the decision. If it goes, As-Is and Due Diligence would carry the load—perhaps with some language tweaks.

Why the Repair Procedure frustrates both sides

On paper, the repair procedure sounds fair. In practice, the host notes it often creates more harm than good, especially in fast markets where buyers don’t have long to evaluate a home during a brief showing.

A few real-world issues that routinely trip buyers:

• Aging HVAC: If an air conditioner is 20 years old but still technically “working,” the repair procedure does not require replacement—even though the unit is well past the typical life expectancy and might be difficult to test in cold weather.

• Roof realities: The clause requires the roof to be “free of leaks,” not free of hail damage or wind damage. A roof can be watertight and still be effectively uninsurable if prior storm damage is present. As the host (a formerly licensed personal-lines insurance adjuster) points out, that’s a problem that can surface only later—when insurance denies a claim because the roof had old damage commingled with new.

• Limited categories, broad concerns Buyers frequently flag meaningful issues that fall outside those nine categories. If the seller declines, the buyer’s ability to exit is constrained and ambiguous—fertile ground for dispute.

It’s easy to see why a cleaner, less interpretive approach is gaining traction.

If the repair procedure is removed, what changes in Greenville?

Eliminating the repair procedure wouldn’t end negotiations; it would clarify them. The market would likely recalibrate around two cleaner frameworks:

As-Is (seller-forward)

• Inspections are allowed, but the deal doesn’t hinge on them.

• Buyers must plan to absorb normal condition and age items (unless another clause says otherwise).

• Listing agents will naturally push for as-is in multiple-offer situations.

Due Diligence (buyer-forward)

• Buyers can terminate during the period and retrieve their earnest money according to the form.

• The form includes an optional termination fee—separate from earnest money—that a seller can require as “skin in the game.”

• Expect this termination fee to become far more common and more important if the repair procedure disappears. (Today, it’s rarely filled out. In a two-option world, it may become the norm.)

What would a “typical” termination fee be? The episode doesn’t speculate beyond noting that the standard earnest money amount around Greenville is roughly 1% of the contract price. Termination fees would likely be less than that and vary by property condition and leverage.

How agents will rebuild the “middle ground” anyway

Even today, agents in the Upstate frequently craft a middle ground within the Repair Procedure (or on top of Due Diligence) by adding targeted language. Common examples mentioned:

• Buyers promising not to ask for “ticky-tack” items and limiting requests to major repairs (structural, HVAC failure, significant system defects).

• Due diligence offers where the buyer waives repair requests entirely, using the period only to confirm no major surprises—terminating if something big surfaces.

In an as-is/due diligence world, expect this type of tailored drafting to become even more prevalent.

What buyers should expect if Due Diligence dominates

If due diligence becomes the default for financed resale purchases, buyers would likely:

• Retain clear rights to ask for major repairs that the Repair Procedure never guaranteed (think hail-damaged roof that jeopardizes insurability).

• Face termination fees more often, making it costlier to walk for non-critical reasons.

• Need to move fast with licensed inspectors, because due diligence windows are often short in the Upstate.

In short, buyers would trade a murky middle for a cleaner path, with a small, known cost to keep sellers comfortable.

What sellers should expect if As-Is and Due Diligence take over

Sellers would likely:

• See more as-is offers on updated, market-ready homes—especially in multiple-offer scenarios.

• Receive due diligence offers with explicit termination fees, keeping buyers committed unless major defects emerge.

• Benefit from fewer ambiguous repair fights, because the contract won’t invite “is this in the nine categories?” debates.

In every case, the market adjusts. Listing strategy, pricing, timing, and pre-list preparation will evolve to match the new norms.

Why the Upstate will feel this more than other regions

Greenville’s MLS is unusual because Form 310 is almost universally used by REALTORS® here (other SC regions mix in different forms). That consistency has made life easier—but it also means any change to Form 310 impacts nearly every resale deal in Greenville, Spartanburg, and Anderson. If the Repair Procedure is removed, expect a short period of “relearning,” a little friction, and then a new equilibrium.

And yes, some practitioners may try to keep using the old version at first. That kind of soft revolt wouldn’t be surprising.

Practical takeaways from the episode

• Repair Procedure’s limits (like “roof must be free of leaks”) leave buyers exposed to real-world risks such as uninsurable roofs or end-of-life systems that still technically function.

• As-is vs. due diligence is simpler to explain, easier to enforce, and aligns with how many neighboring states already operate.

• If the repair procedure goes away, termination fees will likely become the primary “balance point,” giving sellers comfort without stripping buyers of meaningful inspection rights.

• Expect a market-wide recalibration, not a collapse. Agents will continue to tailor language to strike fair compromises for both sides.

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Bottom Line

The Upstate’s standard contract has long tried to split the difference on inspections with the Repair Procedure. The marketplace reality—and the specific pitfalls buyers face with aging systems and storm-scarred roofs—suggests that the clarity of As-Is and Due Diligence may serve consumers better. If the South Carolina Association of REALTORS® ultimately removes the repair procedure from Form 310, Greenville-area deals will adapt quickly: sellers will lean as-is on pristine homes; buyers will seek due diligence with sensible termination fees; and agents will restore the “middle ground” through precise offer language rather than ambiguous boilerplate.

For anyone transacting in the Upstate, it’s wise to learn the difference now. These big changes to buyers’ inspection rights may arrive sooner than many expect—and preparation is the best advantage in any market.

Ien Araneta

Journal & Podcast Editor | Selling Greenville