What is the Inspection Contingency clause?
This is a clause that gives the buyer the right to inspect the property that he or she intends to buy, with the purpose of determining hidden damages or deficiencies that need repairs and may not have been seen during the day of the first visit to the property.
Where is this clause stipulated?
This clause is stipulated in the sales contract. The contract states the following:
Deadline for carrying out the inspection
Maximum amount of estimated repairs or damages that will allow the contract to be terminated
Who carries out the inspection and how do they do it?
A certified inspector carries out the inspection by using instruments, tools, and measurement techniques to determine the condition of the following 11 most important factors:
Air conditioning and heating systems
Water pressure / plumbing system
Source and quality of the water
Presence of pests (termites, cockroaches, rats, mice, etc.)
The inspector prepares an extensive report with an estimate for repairs or replacements that will give you a clear picture of the conditions of the property.
Is the seller responsible for the repairs?
It depends on the type of contract you are using to purchase the property. For example, with an AS IS Contract (the most commonly used type), this inspection only allows the buyer to make a decision to move forward, attempt to negotiate, or end the contract, but does not force the seller to assume responsibility for any repairs.