An inspection contingency in real estate is a condition that requires the buyer to have the property inspected before the sale can be completed. It is typically included in the Buy-Sell Agreement or contract and is designed to protect the interests of both the buyer and the seller.
An inspection is a thorough examination of the property by a professional inspector, who looks for any issues or defects that may need to be addressed. The inspector will typically check for problems with the structure, electrical and plumbing systems, roof, and other components of the property.
If an inspection contingency is included in the contract, it means that the sale is dependent on the property passing the inspection. If the inspection reveals any issues with the property, the buyer may be able to negotiate for the seller to make repairs or may be able to cancel the contract.
The inspection contingency is typically written with a specific timeline in mind, such as a certain number of days after the contract is signed. If the buyer is unable to complete the inspection within this timeframe, they may be in breach of the contract and may be required to forfeit any deposits they have made.
An inspection contingency is an important tool for protecting the interests of both the buyer and the seller in a real estate transaction, as it helps to ensure that the sale is dependent on the property being in good condition.
Category : Lexicon