The Virginia Property Inspection Contingency Addendum Explained

The Short Answer

The Property Inspection Contingency Addendum (often shortened to PICA) is attached to the purchase agreement and gives the buyer the right to inspect the home and negotiate repairs, or walk away, within set deadlines. The buyer chooses and pays for the inspections. Then, by a deadline counted from ratification, the buyer must deliver the reports along with a removal addendum, a release, or a termination. If the buyer does nothing by the deadline, the contingency is treated as satisfied and the contract continues.

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.

The Five Inspection Types

Home inspection. By a Virginia-licensed home inspector, who can bring in licensed tradesmen for specific systems.

EIFS stucco. A specialized inspection for synthetic stucco, which can hide moisture problems.

Lead-based paint. For older homes; see the lead-based paint disclosure.

Specific inspections by licensed contractors. Roof, HVAC, plumbing, electrical, foundation and similar.

Other inspections. Anything else the buyer and seller agree to, such as a sewer scope.

Note that the wood-destroying insect and moisture report, and well and septic, are handled in separate paragraphs of the purchase agreement, under the repair cap.

The Timeline, Step by Step

Inspection period. The number of days is filled in on the addendum and counts from ratification.

Buyer's response. By the deadline, the buyer delivers the reports plus a removal addendum (with repair requests or "no repairs"), a release, or a termination.

Negotiation period. If the buyer requests repairs, there's a five-day negotiation period.

One more day. If no agreement is reached, the buyer has one additional day to terminate. After that, either side may terminate.

Time is of the essence throughout. Missing a deadline by even a day can mean losing the contingency.

What's Waived and What Isn't

Anything in the inspection reports that isn't included in the final agreed repair addendum is waived. The exception is anything the seller already agreed to in the purchase agreement's repair paragraph. So if you care about an issue, it needs to be in the final signed addendum.

The buyer also pays for any damage caused by inspections.

Why It Matters in Hampton Roads

Older homes in Norfolk and Portsmouth, crawl spaces in humid coastal conditions, and homes near the water can all turn up moisture, foundation and drainage issues. I usually suggest buyers think about which specific inspections fit the house before the clock starts. My guide on older-home inspections has a checklist.

What People Commonly Misunderstand

"If I don't respond, the deal is off." The opposite. Silence means the contingency is removed.

"I can bring up something new later." Items left out of the final addendum are waived.

"Negotiation can go on as long as we need." The negotiation period is short and fixed.

My guide to inspection negotiation: repairs and credits covers strategy.

Frequently Asked Questions

How long is the inspection period in Virginia? It's negotiated and written into the addendum. Shorter periods make an offer stronger but leave less time.

Who pays for inspections? The buyer.

Can I terminate after the inspection? Yes, within the deadlines, by delivering a termination.

Next Steps

As your buyer's agent, I help you choose the right inspections, set the period and track every deadline. Reach out to me.

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.