Why “Inspections Are for Informational Purposes Only” Is Ambiguous, Risky, and Often Pointless

Oct 29, 2025

by Adam H. Thayer, ESQ.
Sayer, Regan & Thayer

If you work in real estate long enough, you’ll run into the phrase “inspections are for informational purposes only” in a purchase and sales agreement. It sounds harmless — maybe even like a neat compromise between buyer and seller.

The reality? It’s vague, it means different things to different people, and if you don’t clarify what it actually allows, you’re just inviting a dispute later.

The Core Problem: Ambiguity

Most realtors probably agree this clause means:

  • The buyer can still terminate based on the inspection,
  • But they’re agreeing not to renegotiate the price or terms.

Here’s the issue: those are two sides of the same coin. You can’t truly give up the ability to renegotiate unless you also give up the ability to terminate.

So what happens when buyer and seller interpret the clause differently?

  • Buyer: “I can still walk away if I find something I don’t like.”
  • Seller: “You already waived your right to walk away over inspection issues.”

You’ve just set the stage for a fight.

The “Right to Say No” Makes It Redundant

Even without this clause, a seller can always refuse to renegotiate after an inspection. So what does “informational purposes only” really accomplish? Not much — unless you clearly state whether the buyer can still terminate.

The Termination Question You MUST Answer

If you insist on using this clause, spell out:

  • Yes, the buyer retains the right to terminate after the inspection; or
  • No, the buyer waives the right to terminate based on inspection results.

If you don’t make that explicit, you’re relying on assumptions — and assumptions blow up deals.

Sellers: Be Careful Who You Let In

If a buyer has waived the right to terminate, think twice before letting them inspect at all.

Why?

  • If they find issues and then breach anyway, you could be forced to re-list.
  • Worse, you might now have to disclose those inspection findings on your seller disclosure, potentially making the property harder to sell.

Bottom Line

“Informational purposes only” feels like a clever middle ground — but without defining whether the buyer can still walk away, it’s just an ambiguous placeholder.

If you’re a realtor, attorney, or seller:

  • Don’t use it without clarifying the termination rights.
  • If termination is waived, consider whether to allow inspections at all.
  • Remember, you can always say no to renegotiation without muddying the waters.

Clear terms protect deals. Vague ones protect nobody.

Sayer, Regan & Thayer can help you draft inspection clauses that are enforceable, unambiguous, and actually accomplish what you want them to.