When a property is advertised as “subject to interior inspection” or “drive by only” a potential buyer may drive by the property to view the exterior, but must submit a reasonable offer to the seller prior to viewing the interior. This seems out of the ordinary for buyers accustomed to viewing a property before submitting an offer.
Typical of income and multi-family properties (duplexes, triplexes and 4-plexes/quadraplexes) that are not usually owner occupied, this term is set in place to avoid disturbing leasing tenants residing in the homes. Once an offer is accepted a viewing of the interior of the property will be arranged. An offer is merely conditional as long as “subject to interior inspection” is included in the terms. This means that the buyer may back out of the offer within an allotted time period if they do not wish to proceed with the sale.
Q: What happens when you get to do an interior inspection, and you don't like what you see?
A: You can withdraw your offer. Your offer was submitted subject to interior inspection, after you inspect the property and it's not quite what you were thinking, you can simply walk away.
By Charles Burnett, Seattle Area Multi-Family Investment Property Specialist | Sound Realty Group