An inspection contingency, which allows the buyer to back out if something problematic is uncovered during the home inspection. It can also stipulate that the seller has to cover the costs of repairs that are recommended as a result of the inspection. An appraisal contingency. Once an appraiser...
Inspection:An inspection contingency, or “due diligence clause” is a clause that states that the offer is contingent on the results of ahome inspection. The clause typically affords the buyer a specified time within which to conduct a home inspection. Should any undesirable findings turn up, th...
The Home Inspection Contingency Every buyer should use ahome inspector’sservices to ensure they aren’t buying a property that will be more trouble than it’s worth. The home inspection contingency is vital to protect the buyer’s interests and ensure they have enough time to assess the proper...
A home inspection is meant to check the overall condition of a property, to make sure the house has no significant issues like: Signs of leaks and water damage Issues that threaten the home's foundation and structural integrity Damage to the roof Problems with the home's electrical ...
An inspection contingency gives the buyer the right to inspect the property professionally. If significant issues or defects are discovered during the examination, the buyer can negotiate repairs with the seller or terminate the contract. The contingency allows the buyer to ensure the property is in...
You won't lose the earnest money if your purchase contract includes a contingency — an out — if the inspection turns up problems and you decide not to buy the home as a result. About the author Barbara Marquand Barbara Marquand is a former NerdWallet writer covering mortgages, homebuying ...
When is earnest money refundable? There are certain situations that may occur whenearnest money is refundablesuch as: 1. Unfavorable home inspection (Home Inspection Contingency) If you have ahome inspection contingencyclause in your purchase agreement, and the house comes back needing a new roof an...
With an inspection contingency, the buyer is given a certain number of days to obtain a professionalhome inspection. The inspector examines the home to evaluate major systems such as the plumbing, electrical wiring, and heating and cooling systems. They also evaluate the structure of the home and...
Home inspections provide an opportunity for a buyer to identify any major issues with a home before closing. Your first clue that a home inspection is important is that it can be used as acontingencyin your contract with the seller. Thiscontingency providesthat if a home inspection reveals sign...
What Is an Example of a Contingency Clause? A contingency clause can include a buyer agreeing to purchase a home as long as it passes inspection. If the inspection fails or shows issues that were missed during the initial walk-through, the seller might be required to make the repairs or di...