Definition
This contract term protects you—if the inspection reveals serious problems, you can ask for repairs, credits, or walk away if you choose. It's one of your most important protections as a buyer.
Where you’ll meet it
How do I make an offer without overpaying?
See it in Buying my first home · Step 4About this term
Standard contingency protecting buyer. Typically 7-14 days for inspection. Allows renegotiation of repairs/credits. Buyer can cancel if unsatisfied. Clear contingency language critical. Removal indicates satisfaction. Inspection reports document condition. Major defects may trigger cancellation. Minor issues typically negotiated. Balance buyer protection vs. offer strength. Waiving contingency weakens buyer but strengthens offer. Strategic use in negotiations.
Pro Tip
Never waive the inspection contingency. Major issues justify cancellation.
Example
Home inspection contingency allowed cancellation when foundation cracks discovered.