Whether you’re buying or selling a home (or both), pay special attention to how a home inspection can serve your interests. A professional home inspection protects both buyers and sellers from legal action sparked by problems found after a home is sold.
Buyers have long been advised to include a home inspection contingency in their purchase offers. The cost–$300 or so–is well worth the information it buys, protecting the purchaser from costly surprises later on. In fact, many homes harbor problems their owners aren’t even aware of until a professional inspector points them out. (That’s why some savvy sellers have been getting their homes inspected before putting them on the market.)
Inspection Contingencies
A sales contract may include one of two types of inspection contingencies:
- A “general contingency” inspection clause stipulates that the contract is contingent on the buyer conducting a “satisfactory” professional home inspection. The contingency specifies a certain number of days for the buyer to conduct the inspection and report back to the seller, and allows the seller time to respond to the inspector’s findings.
With a general contingency clause, if the buyer dislikes anything in the inspection results and chooses not to go forward with the transaction, the contract is null and void. Obviously, this type of contingency favors the buyer.
- A “specific contingency” spells out particular criteria that must be met before the buyer can back out, e.g., the owner’s failure to fix a problem identified by the inspection. The buyer can’t just walk away for any reason. Although not ideal for buyers, this type of contingency offers more protection than no home inspection clause at all.
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