A home inspection contingency in a real estate purchase contract is one of the most important clauses in the document. It gives you the right to have the property inspected by a professional after the offer is accepted but before the sale is finalized. This isn’t a mandatory contingency, but it’s one that shouldn’t be skipped.
The home inspection contingency allows you to make informed decisions about what’s likely your largest purchase. If the inspection reveals serious problems, such as foundation cracks, outdated electrical systems or a failing roof, you ask the seller to repair the issues or seek credits for the problems. If neither of those works out, you may be able to walk away from the purchase without penalty.
Timeframes and negotiation options
Most contracts provide a limited period, often 7 to 10 days, to complete the inspection and respond. This short window makes it essential to schedule inspections quickly. You can also bring in specialists for issues like mold, radon or termites, depending on what the general inspector finds.
Once the inspection report is reviewed, you typically have three choices: move forward with the purchase, negotiate repairs or credits, or cancel the deal. It’s important to understand that sellers aren’t obligated to agree to all repair requests. Negotiations can be a balancing act, especially in competitive markets.
Without a home inspection contingency, you must accept the property “as is,” which can be risky. Hidden defects may not become apparent until after closing, when it’s too late to back out. Including this contingency may give you peace of mind and help prevent expensive surprises.
A home inspection contingency is only one of the options you have for protecting your interests during a home purchase. Working with someone familiar with someone who’s familiar with the legal aspects of home purchasing can be beneficial, so you can learn your options and take steps to ensure the purchase is what you expect.
