Inspection Contingency
A contract clause letting you negotiate repairs, a credit, or walk away based on inspection findings.
In plain English
An inspection contingency gives you a defined window after your offer is accepted to have the home professionally inspected and, based on the results, request repairs, negotiate a credit, or cancel the contract and get your earnest money back.
This is one of the most valuable protections in a purchase agreement, waiving it means accepting the home's condition completely as-is.
Buyers sometimes assume an inspection contingency guarantees repairs or a lower price. It only guarantees your right to walk away without penalty and keep your earnest money, the seller is never required to fix anything or renegotiate.
Where you'll run into it
Guides and tools on TheBuyingPath that cover inspection contingency in context.
Related terms
Sources
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