Inspection Contingency Clause
A provision in a real estate contract giving the buyer the right to have the home inspected within a specified time period.
- Example : Nico entered a real estate contract to purchase Kim’s home and provides a $30,000 down payment. The contract has an inspection contingency clause allowing Nico to obtain a home inspection within 5 days. On the 4th day, Nico gets the home inspected. The inspection report reveals the the home has a major roof leak. Nico decides to terminate the contract and receive a refund of his $30,000 down payment.