Generally, contingency clauses are added to real-estate purchase contracts to ensure certain conditions are met before the contract becomes binding. A home inspection contingency allows the buyer to walk away from a purchase penalty free, in case a home inspection reveals defects the buyer is not willing to accept.
So, if you are buying or selling a home in Chula Vista, or anywhere else in the area of San Diego, and you’d like to find out more about how home inspection contingency works, we’ve compiled a short guide to give you a more detailed insight into the matter. Keep reading to learn more!
How does home inspection contingency work?
Home inspection contingency clauses are the conditions listed in the buyer’s offer and are meant to protect the buyer’s interests. They’re not a mandatory part of purchase contracts, and sellers can refuse offers that contain them. Still, they are highly beneficial and should not be waived easily.
Essentially, adding a home inspection contingency clause to the offer means that, as a buyer, you have the right to withdraw from the purchase without penalty and get your deposit back if the home inspection doesn’t provide satisfactory results.
Moreover, most home inspection contingencies provide the buyer with the tools for negotiation. Based on the results of a home inspection, buyers can renegotiate the property’s price or ask the seller to make repairs before the deal is sealed.
What does it mean to remove the inspection contingency?
Removing the inspection contingency means that the terms of the contract have been met and that the purchase can proceed to a successful close.
Once the inspection has been completed and the buyer feels that certain repairs need to be made, they can use the inspection report and negotiate the repairs with the seller to see which ones they are willing to make.
If the condition of the home is to the buyer’s satisfaction and all repair requests have been negotiated, the buyer fills a contingency removal form and submits it to the seller to show that they’re willing to go forward with the purchase.
How long does inspection contingency take?
All contingency clauses have a removal date. This means that there’s a limited timeframe within which the buyer can act upon the inspection report and make a decision whether or not to proceed with the purchase.
If the deadline for negotiations and repairs is not met and the contingency removal is not signed, the contract can be declared null, and the buyer can lose their claim on the home. Therefore, it’s very important for the buyer to be ahead of the deadline and schedule the home inspection as soon as possible.
In California, the default contingency period is set for 17 days, although it can be shortened or waived to make an offer stand out in a multiple-offer scenario. Waiving the contingency clause means the buyer commits to purchase the home as-is.
Where in Chula Vista can I get a first-rate home inspection?
If you’re buying a home in East Chula Vista, or anywhere else in the vicinity, and you need the services of an InterNACHI certified inspector, The Inspectors Company is the go-to company for you.
Whether the property you’re purchasing needs a professional foundation examination, or a thorough household appliances check-up, our trained and dedicated inspectors can help. We provide a full scope of residential inspection services tailored to meet all of your specific needs.
At The Inspectors Company, you can get mold and thermal imaging inspections, mobile home inspections, commercial building inspections, verbal home inspections, and more. We can answer all of your questions and concerns and debunk common misconceptions about home inspections. Don’t hesitate to give us a call today!