Waiver
Definition and meaning of Waiver in real estate.
A waiver is the voluntary and intentional relinquishment of a known legal right, claim, or privilege. In real estate transactions, it occurs when one party agrees to give up a protection or condition that was previously established for their benefit.
In more detail
Waivers are commonly used during contract negotiations or the closing process. For example, a buyer might choose to waive a home inspection contingency in a competitive market to make their offer more attractive. Once a waiver is signed, the party giving up the right cannot later sue or cancel the contract based on that specific issue.
Real estate agents advise clients to use waivers cautiously because they can expose the party to significant financial risks.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Common types | Inspection waiver, appraisal waiver, contingency waiver |
| Legal requirement | Typically must be in writing to be enforceable |
| Watch out for | Loss of contract deposits or legal protections |
A buyer signs an appraisal waiver, meaning they agree to proceed with the purchase even if the lender appraises the property for less than the agreed purchase price.
Frequently asked questions
Can a waiver be verbal?
While some verbal agreements can occasionally be recognized, real estate transactions almost always require waivers to be in writing. This ensures there is a clear paper trail and prevents disputes between the buyer and seller.
What is an appraisal waiver?
An appraisal waiver is an agreement where the lender does not require a formal appraisal of the property. This is common when the buyer has a high down payment or the property has strong historical sales data.
Related terms
Sources & references
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