Inspection Contingency Addendum

An Inspection Contingency Addendum is a document added to a real estate purchase agreement that allows the buyer to have the property professionally inspected before finalizing the sale. Key aspects include:

1. Specifies a timeframe for conducting the inspection

2. Outlines the buyer’s rights if issues are discovered

3. May allow for renegotiation of price or repairs

4. Provides an option for the buyer to cancel the contract

5. Can cover general home inspections, pest inspections, or specific systems

This addendum protects the buyer by ensuring they have full knowledge of the property’s condition before completing the purchase. It also sets clear expectations for both parties regarding the inspection process and potential outcomes. Buyers can use the results to request repairs, adjust the purchase price, or walk away from the deal if significant problems are found. For sellers, it’s an opportunity to address issues proactively and potentially avoid last-minute complications in the sale.