An Inspection Contingency gives you the right to have a home inspector come and examine the property before you close on the purchase. The purpose of the contingency is to protect you from buying a home that may have serious hidden structural problems or material defects. When you add an inspection contingency to the purchase contract, you'll want to make sure it covers both the home and the property on which it sits. You might also want to have a separate contingency for each of the following:
- Toxic Substances
- Pests, including termites, mice, rats and roaches.
Generally the inspection Contingency will require you to have your inspection within five to ten days after the offer is accepted by the seller. Otherwise, you may lose the right to withdraw from the contract.Here is a sample home inspection contingency addendum:
Sometimes buyers hope that the inspection will turn up small, fixable problems with the property so that they can get additional money from the seller at closing. The real purpose of the inspection contingency, however, is to protect you from purchasing property that may have serious, expensive, or unfixable problems.
The inspection contingency should be either in the contract or attached to it as a rider or addendum.
|The BUYER, may at his own expense and on or before _______________, have the property located at: _______________ inspected by a person engaged in the business of conducting home inspections. If it is the opinion of such inspector that the property contains serious structural, mechanical, or other defects, then the BUYER shall have the option of revoking the offer by written notice to the SELLER and/or the Broker, as your agent, prior to the expiration of such time, which notice shall be accompanied by a copy of the inspection report, whereupon all deposits made by the BUYER to you shall be forthwith refunded and this Offer shall become null and void and without further recourse to any party. |
Inspection Contingency provided courtesy of the Greater Boston Real Estate Board.