Home Inspection Contingency – What It Is and Why It’s Important

What is Home Inspection Contingency Clause?

The Home Inspection Contingency Clause is a part of the purchase agreement that allows a potential homebuyer to have their property inspected by a qualified professional home inspector. The clause permits the buyer to either renegotiate the purchase agreement or cancel it if the inspection reveals any major problems in the property.

Why Are Home Inspection Contingencies Essential For Buyers?

This clause helps protect the buyer by providing them with information about the condition of their property before they commit to purchasing it. This clause also encourages sellers to disclose any issues with a property before agreeing, as they know that potential buyers can find out about them through an inspection. By including this clause in real estate contracts, buyers can be sure they are not making an uninformed decision and can be confident in investing their earnest money in purchasing a home without any major problems.

How Does Home Inspection Contingency Work?

This contingency outlines which components must be inspected by a professional home inspector, such as electrical, plumbing, heating, cooling, and structural components. With a good inspection contingency, buyers can rest assured that they will not be surprised by any costly repairs or replacements after closing. This contingency also outlines which components must be inspected by a professional home inspector, such as electrical, plumbing, heating, cooling, and structural components. With a good inspection contingency, buyers can rest assured that they will not be surprised by any costly repairs or replacements after closing.



The Exterior Inspection


Foundation inspections involve inspecting the entire exterior foundation of a home, including its walls, floors, and ceilings. During this process, inspectors look for signs of any major issues such as cracks or other damage. They may also use specialized tools to check for deficiencies in various areas. Any issues that are found in the inspection results should be discussed with the seller and addressed before closing on the house.


The roof inspection should include an assessment of any damaged or missing siding, a review of the inspection report, and any secondary evidence (documents, photographs). If the roof has been recently repaired, it should also be inspected to ensure that it is free from defects. The contingency allows buyers to cancel if they find any major issues with the house’s structure.


One of the essential home inspections to consider is a garage inspection. This inspection will help identify any potential problems with the garage door, attached garage, and other items related to the garage space.




Regarding walls, home inspectors will check for damaged or missing siding, any signs of water damage, and any other defects that could affect the wall’s structural integrity. Additionally, they may also pay attention to sufficient insulation and the condition of any paint or wallpaper.

Interior Inspection

HVAC System

It is important to include an inspection of the HVAC system when conducting a professional home inspection. The HVAC systems provides heating, cooling, and adequate ventilation.

A professional home inspector will check for proper installation and maintenance of the furnace and air conditioner and any visible problems. It is vital to ensure that all HVAC system components are working correctly to perform efficiently and safely. A properly functioning HVAC systems can help reduce energy costs and improve air quality in your home.

Electrical Systems

If there is a major defect in the house’s electrical system, such as faulty wiring or problems with electrical panel, a professional inspection should be done to identify any safety issues. The electrical panel should also be inspected to ensure that it is up to code and that all wires and circuitry are correctly functioning.

Fire Safety

When it comes to fire safety, proper fire rating and full inspection should be conducted to detect any potential fire hazard in the home buying process. A home inspection contingency protects buyers by allowing them to back out of their purchase if there is evidence of a significant fire hazard in the home that cannot be resolved or corrected.

Water and Plumbing

A professional home inspector will check the major systems in the home, including water and plumbing. The inspector will look for any visible leaks or other signs of water damage and test for adequate water pressure. The contingency allows buyers to renegotiate or even cancel their home offer if problems are found in the home inspection report.

Bathrooms, Laundry Room and Appliances

For many buyers, inspecting major appliances is a key part of their home inspection contingency process. They must ensure that these items are working correctly and are up to par with safety regulations. Additionally, laundry rooms must be assessed for any potential hazards or issues that may arise when using them. Furthermore, properly secured toilets should also be included in the home inspection contingency process.

Radon Testing

Home inspection diligence contingency is crucial in buying a property, and radon testing is a critical component. Radon is a naturally occurring, odorless, and colorless gas that can cause accidental carbon monoxide poisoning. Further inspections and radon testing help identify additional risks related to the property, such as mold or water damage.



What Are the Things That Home Inspection Doesn’t Cover?

A home inspection is an integral part of buying or selling a house. It helps to identify any existing or potential issues with the property that may need attention. However, it’s important to know that certain aspects of a home are not covered in a standard home inspection. These can include items such as:

  • drainage
  • inside sewer lines and septic systems
  • inside chimneys
  • inside the walls
  • underneath the floors

How Do You Deal With The Results Of The Home Inspection?

Home inspections are an essential part of the home-buying process, as they provide a detailed report of the property’s condition. However, if the inspection reveals any significant issues or problems, it can be challenging to decide how to proceed.

You may need to decide whether to negotiate repairs with the seller or as a seller to adjust your purchase price accordingly. Understanding typical contingency clauses in real estate contracts and how they can affect your negotiation power is also important.

Understanding these elements can help you make an informed decision on how best to deal with the results of your home inspection.

How Long Do Home Buyers Have to Conduct Home Inspection?

Before purchasing a home, buyers must have a detailed home inspection to detect potential issues. The period during which buyers can conduct their assessment is known as the “inspection period.” Generally, this is a certain number of days following the signing of the contract and can vary from state to state. The agreement between the two parties will typically state how long they have to complete their inspections, but this can vary widely depending on how quickly both parties want to get into the house. Some buyers may want to move in as soon as possible, while others may want to consider it before making a decision. This is typically done within one to two weeks.



During this period, buyers should be aware that they may also be required to sign a contingency release form allowing the purchase agreement to move forward without an inspection. Buyers need to understand their rights and remain informed throughout the entire process.

Can a Buyer Back Out of Buying the House After Inspection?

Buying a house is an exciting yet challenging process. Knowing what you can and cannot do during this period is important to ensure a successful purchase. One of the questions people ask often is if a buyer can back out of buying the house after inspection. The answer to this question depends on the terms and conditions stated in the purchase contract and any inspection contingencies specified at the time of signing.

Buyers have the right to back out of a purchase contract after an inspection if they find any major problems with the property. However, certain conditions and contingencies must be met for buyers to do this legally.

A real estate professional should always be consulted for advice about steps to take when backing out from purchasing a house or any other situation that may arise in the closing table.

As a Seller, Should You Waive the Home Inspection Contingency?

In a competitive housing market, waiving the home inspection contingency may seem like the best way to accept a buyer’s offer. However, it is crucial to understand the potential implications of such a decision. Waiving the home inspection contingency does not necessarily guarantee that you will receive an offer, and it may come with unexpected costs. It is essential to weigh these considerations before deciding if waiving this contingency suits you as a seller. Additionally, understanding what closing costs typically paid can help you make an informed decision about whether or not to waive the home inspection contingency.

Home Inspection Contingency: Take Away

Home inspection contingency is an important part of real estate transactions, as it helps to protect the buyer from any hidden issues that could arise after purchase. This contingency gives buyers a cash credit or an adjustment of the sales price, as well as certain rights to terminate the transaction if significant defects are discovered during a home inspection.

Real estate agents should advise their clients on the importance of including this contingency in all real estate transactions. Especially in a competitive market with new technology and other mortgage lending services, buyers should ensure they get all the protection. Home inspection contingency helps buyers negotiate for better terms on their purchase and gives them peace of mind knowing they won’t be stuck with unexpected repairs or costs.

Foothills Home Inspections Can Help You with Home Inspection

Foothills Home Inspections offers unbiased home inspection services in Northern Colorado. We have years of experience inspecting residential and commercial properties for sellers and buyers. Our inspectors are highly skilled and knowledgeable in detecting issues that may not be visible to the untrained eye. We are committed to providing an accurate, thorough, and honest home inspection report to help you make an informed decision. Whether you’re buying or selling a property, we can help protect your earnest money by comprehensively evaluating the property’s condition. Save time, money, and stress by hiring Foothills Home Inspections for your home inspection needs!



Contact us today and book your appointment.