What is a home inspection contingency?

A home inspection contingency is a condition included in an Idaho RE21 Purchase and Sale agreement or other real estate contract that allows the buyer to have a professional inspection of the property before the sale is finalized. This contingency typically provides the buyer with a specific timeframe, usually between 7-14 days, during which they can have the property inspected by a professional home inspector. The inspection is done to check for any major issues or defects with the property, such as structural problems, electrical or plumbing issues, or pests.

There are two inspections outlined in the Idaho RE21, the primary and secondary contingency. This is not the complete text, but the primary inspection is based on choosing to do an inspection and the timeframe that the inspection will be completed. In addition, there is wording that governs when each party has to respond to the other party. The following language is owned and copyright protected by the Idaho Association of Realtor's and should not be used without consulting an attorney or Realtor for your specific needs.

• 12. INSPECTION: (A). BUYER chooses  to conduct inspections  not to conduct inspections. If BUYER chooses not to conduct inspections, skip Sections 12(B) and (C). If indicated, this contract is contingent upon BUYER'S approval of the condition of the PROPERTY and BUYER shall have the right to conduct inspections, investigations, tests, surveys and other studies at BUYER'S expense. BUYER is strongly advised to exercise these rights and to make BUYER'S own selection of professionals with appropriate qualifications to conduct inspections of the entire PROPERTY. BUYER shall keep the PROPERTY free and clear of liens; indemnify and hold SELLER harmless from all liability, claims, demands, damages and costs; and repair any damages arising from the inspections. SELLER shall make the PROPERTY available for inspection and agrees to accept the responsibility and expense for making sure all the utilities are turned on no later than _____ business days (two [2] if left blank) from acceptance for the inspection except for phone, cable and internet. No inspections may be made by any governmental building or zoning inspector or government employee without the prior consent of SELLER unless required by local law. 
• (B) TIMEFRAME(S) FOR INSPECTIONS 1) PRIMARY INSPECTION: Buyer's inspection contingency allows a BUYER to conduct a general inspection of the PROPERTY which includes all aspects of the PROPERTY, including but not limited to neighborhood, conditions, zoning and use allowances, environmental conditions, applicable school districts and/or any other aspect pertaining to the PROPERTY or related to the living environment at the PROPERTY; hereinafter referred to as the Primary Inspection. Except for additional items or conditions specifically reserved in a Secondary Inspection below BUYER shall, within _____ business days (five [5] if left blank) of acceptance, complete these inspections and give to SELLER written notice of disapproved items/conditions or written notice of termination of this Agreement based on an unsatisfactory inspection. Once BUYER delivers written notice to SELLER it shall end BUYER'S timeframe for inspections other than those specifically reserved in a Secondary Inspection below and is irrevocable regardless of if it was provided prior to the deadline stated above.

The purpose of the home inspection contingency is to protect the buyer by giving them the opportunity to identify any problems with the property before the sale is completed. If the inspection reveals any issues that are deemed serious by the buyer, they can then renegotiate the terms of the contract with the seller or choose to terminate the contract. This protects the buyer by allowing them to walk away from the sale or to request repairs or a reduction in the purchase price.

During the inspection, the inspector will typically provide the buyer with a detailed report of any issues found, along with recommendations for repairs or further evaluation. Buyers should keep in mind that the inspector is not evaluating the market value of the home, but its condition. If the inspection reveals any serious issues, buyers should consult with the seller to determine a fair resolution.

It's important for buyers to be present for at least part of the inspection (usually the last 15 minutes) as it's a good opportunity for them to ask questions, get more information about the property's condition, and understand what it may cost to repair any issues found. It's also important for buyers to understand that a home inspection contingency is not a guarantee that the property will be perfect, but it allows buyers to have a better understanding of the condition of the property they are purchasing and make informed decisions.