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Inspection Contingencies: Protecting Buyers and Sellers in Real Estate Deals

Posted by Anthony Serra | Apr 30, 2024 | 0 Comments

In the world of residential real estate transactions, the inspection contingency plays a pivotal role in ensuring both buyer and seller are protected throughout the process. Essentially, the inspection contingency allows the buyer to thoroughly inspect the property before finalizing the deal. This crucial step helps uncover any hidden issues or defects that may not be visible during a standard walkthrough.

The Inspection Contingency Clause

When a buyer makes an offer on a property, they typically include an inspection contingency clause in the contract. This contingency gives them a specified period, usually around 10 to 14 days, to conduct various inspections on the property, such as a general home inspection, pest inspection, radon testing, septic systems, underground storage tanks (UST) or any other specific inspections they deem necessary. This time frame can generally be extended if more time is needed to obtain all the necessary inspections and reports. If any significant issues are discovered during this time, the buyer has the option to negotiate repairs with the seller, request a credit for the repairs, or even withdraw from the deal altogether without breaching the contract..

Inspection Results Require Careful Negotiations

For sellers, the inspection contingency can be nerve-wracking as it introduces a level of uncertainty into the transaction. However, it's also an opportunity for them to address any issues upfront, potentially avoiding last-minute negotiations or deal cancellations. It is best for both sellers and buyers to deal with inspection issues as early as possible in the transaction.

Inspection Contingency Clause Protects Buyers and Sellers

Overall, the inspection contingency serves as a vital protection mechanism for both parties involved in a residential real estate transaction. It allows buyers to make informed decisions about their purchase and ensures sellers are transparent about the condition of the property. It also educates the parties as to the condition of the home thereby affording the parties an opportunity to adjust the purchase price accordingly. Buyers are helped because repairs issues are addressed, and sellers are helped since they can refuse to make the repairs and terminate the transaction if the cost of doing so is exorbitant.

About the Author

Anthony Serra

Tony Serra is a passionate advocate, especially for the elderly, disabled and those of modest means who need the services of an experienced and caring attorney. For more than 30 years, Tony has been helping common, everyday folks navigate their way through life's turbulent waters. Through innovation and utilizing modern technology, Tony and his law firm are now able to offer quality legal services that at one time were prohibitively expensive, at a fraction of the cost. If you need basic legal services, such as a Will, Power of Attorney, Living Will, Special Needs Trust, real estate transactions, uncontested guardianship pleadings and much more, please visit our website and our SMART LAW legal services platform. You will be pleasantly surprised by what we offer and glad you did! Tony is also an experienced mediator and founder of the Conflict Resolution Center of NJ. Tony has specific training in family matters as well as elder law and contested guardianship and estate cases.  

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