What is waiver?
A waiver is a voluntary action that removes a party’s right or ability in an agreement, while essentially removing a real or potential liability of another party in the agreement. The waiver is a separate document from a contract, but is related to conditions included in a contract.
A real estate transaction contract will generally include some standard contingencies, such as a financing condition or an inspection condition. Once both parties agree in writing to the terms and conditions of the contract, the next paperwork step can be a waiver – a separate document that is signed when the buyer/lessee is satisfied with/willing to remove conditions and move forward with the sale/lease.
As an example, if a prospective buyer or a business owner looking to lease a space decides to forego the property inspection, this party will sign a waiver to that effect. By signing the waiver, the prospective buyer/lessee also relinquishes the right to make any claims in the future, with regard to property issues that may have been uncovered during the inspection. At the same time, the waiver clears the seller/lessor from potential liability.
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