Definition
This critical protection allows you to get a professional inspection and walk away if serious defects are discovered. It's your best defense against buying a property with major problems.
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This protects you by allowing an inspection period (usually 7-10 days) where you can exit without penalty if major defects are discovered. Professional inspectors evaluate foundation, roof, HVAC, electrical, plumbing, and other systems. It's your opportunity to discover hidden issues before closing.
Pro Tip
Don't waive the inspection contingency. It's your strongest protection.
Example
You discover foundation cracks during inspection and use the contingency to renegotiate the price or back out of the offer entirely.