What Is an Inspection Contingency in Real Estate?

An inspection contingency lets the buyer have the home professionally inspected within a set time. After reviewing the report, buyers can request repairs, seek credits, or cancel if the contract allows.

✅ How an Inspection Contingency Works

  • Inspection window: usually 5–10 days after contract acceptance.
  • Requests & repairs: buyer may ask for fixes or credits based on major defects.
  • Cancellation rights: if no agreement is reached by the deadline, buyer may cancel as allowed and recover earnest money.

Repairs, credits, and extensions should be documented via an addendum to the purchase agreement.

💡 Why the Inspection Contingency Matters

  • For buyers: ensures they know the home’s condition and costs.
  • For sellers: sets a structured timeline to resolve issues and keep closing on track.
  • For FSBO sellers: clarify “as-is” terms early if you’re selling as-is.

📍 FSBO Tip: Set Expectations in MLS

Use your MLS remarks to note showing rules, known issues, and items excluded from the sale. Clear instructions reduce surprises during inspection.

After negotiations, your title/escrow team will reflect credits and fees on the settlement statement at closing.

🧩 Quick Myths

  • “Inspection = code compliance.” ❌ Inspectors report condition; they don’t enforce code.
  • “As-is means no inspection.” ❌ Buyers can still inspect; it limits repair obligations.