Inspection Contingency
The inspection contingency allows buyers to renegotiate or exit based on inspection results. Learn how this clause protects buyers from costly defects.
Definition
An inspection contingency is a clause in a purchase agreement that makes the sale contingent upon the buyer’s satisfaction with a professional home inspection. If the inspection uncovers significant problems (such as structural damage, pest infestation, or major systems in need of repair) the buyer can request repairs, negotiate a price reduction, or cancel the contract without penalty. Inspection contingencies usually specify a timeframe for completing the inspection and responding to findings. Waiving an inspection contingency may strengthen an offer in competitive markets but exposes buyers to unforeseen liabilities.
Why It Matters
This is a deadline, and Washington purchase agreements count deadlines in days rather than in good intentions. Miss the response date on NWMLS Form 35 and the contingency is satisfied by default, which turns refundable earnest money into money at risk. Waiving the clause outright is what wins competitive offers, and it is also how buyers end up owning a $40,000 foundation problem they had three days to find.
Examples
A 10-day contingency, an inspection booked on day 8, a report on day 9, and no time left to get a roofing bid before the response is due.
Seller receives a request for a $12,000 credit covering a failing furnace and drainage work, counters at $7,000, and both sides sign an addendum on day 6.
Facing seven offers on a Ballard bungalow, a buyer pre-inspects before writing and waives the contingency, putting $25,000 of earnest money at risk to win the house.
Tips
Book the inspector before you write the offer. The clock starts at mutual acceptance and the good inspectors are booked a week out.
On Form 35, pick the response structure deliberately. A right to request repairs and a right to disapprove the inspection are different clauses with very different leverage.
Take a credit instead of seller repairs where you can. Seller repairs go to the cheapest available contractor and you inherit the workmanship without recourse.
Related Terms
Contingency Clause
A contingency clause is a contract condition that must be met for the sale to proceed. Common contin...
Home Inspection
A home inspection is a professional review of a property’s condition. Understand what inspectors eva...
Kick-Out Clause
A kick-out clause allows sellers to continue marketing a home under contract with contingencies. Lea...
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