The Short Answer
The Property Inspection Contingency Removal Addendum is the document that ends the inspection contingency. The buyer checks which contingencies are being removed, attaches the reports, and either states that no repairs are needed or lists the repairs requested. Once the seller agrees and everyone signs, those repairs become part of the contract. (Agents often call this the repair addendum; you may also hear PICRA.)
This guide is part of my series on the documents you'll sign buying or selling a home in Virginia, which walks through the main forms in the order they show up. It follows the Property Inspection Contingency Addendum and leads to the final walk-through.
What the Buyer Fills Out
Contingencies removed. Property inspection, EIFS, lead-based paint and other, as applicable.
Reports. Attached so both sides are working from the same findings.
The choice. Either "no repairs necessary" or a list of specific repairs the seller agrees to make.
Be specific. "Fix the roof" invites argument; "repair the active leak above the primary bedroom by a licensed roofer and provide an invoice" doesn't.
Who Pays and the Repair Cap
Agreed repairs are at the seller's expense and, unless the parties agree otherwise in writing, don't count toward the purchase agreement's repair cap. The seller also remains responsible, up to the cap, for items under the appraisal, wood-destroying insect and moisture, and well and septic paragraphs, even if the buyer waives the inspection items.
Sometimes a credit at closing works better than repairs. My guide on repairs vs. credits explains when, and my guide to seller concessions covers loan limits.
Completion and Re-Inspection
Agreed repairs must be completed in a workmanlike manner before the walk-through, with evidence of payment, like paid invoices, provided to the buyer. The buyer can have the original inspector re-inspect, at the buyer's expense. An agent records the date all parties accepted the addendum, which matters for later deadlines.
For Sellers
Hire licensed contractors where the repair calls for one, keep every receipt, and schedule the work early so it isn't rushed before closing. I coordinate access and timing for my sellers so the walk-through goes smoothly.
What People Commonly Misunderstand
"The seller can choose a cheaper fix." The addendum controls. Vague language invites disputes.
"Agreed repairs come out of the cap." Usually not, unless agreed in writing.
Frequently Asked Questions
What happens if we can't agree on repairs? The negotiation period runs out and termination rights apply. See the inspection contingency addendum.
Can repairs be done by the seller personally? Unless the addendum requires a licensed contractor, sometimes, but the work must be workmanlike.
Is PICRA the same thing? It's the shorthand many agents use for the repair agreement that comes out of inspections.
Next Steps
I write repair requests precisely and track them through completion. Reach out to me whether you're buying or selling.
This article is general information about how these documents commonly work in Virginia, not legal advice. Forms are updated from time to time and every transaction is different, so read the version you're actually given and talk with a Virginia real estate attorney about legal questions.
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