What Is Inspection Contingency?
Inspection Contingency: A contract clause giving you time to inspect the home and cancel or negotiate repairs.
Also called: due diligence period, option period
An inspection contingency gives you a set number of days, often 7 to 10, to have the home inspected. Depending on the contract, you can then cancel, accept the home as is, or ask for repairs or credits.
What to do during the period
- Schedule the home inspection right away
- Add specialist inspections if needed
- Review the report and get repair estimates
- Send a repair request, proceed, or cancel, before the deadline
Regional names
In some states this is a "due diligence period" or "option period," and you may pay the seller a small fee for the right to cancel.
Good to know
Even when a home is sold as is, you can usually still inspect and cancel during this period. The seller just isn't required to fix anything.