Inspection Contingency Catch-22

Like any contract, the Inspection Contingency — which governs the Buyer’s inspection timetable — can be amended if both parties agree.

shot_clockThe most common amendment:  a time extension to allow both sides to get more info about an inspection-related issue.

The catch, though — especially if turnaround time is an issue with one or both parties — is that the same slow(er) pace that can make an extension necessary, can also be an obstacle securing an extension before time runs out.

Consequences

At least in Minnesota, if the Inspection Contingency expires without a resolution, the Purchase Agreement automatically cancels, whereupon both parties are to expeditiously sign a Cancellation.

That, too, can be cured, if both parties agree.

When might that not be the case?

When another Buyer shows up with a better offer.

See also, “Counter-Offer vs. Addendum vs. Amendment“; and “Proliferating Home Inspection Tests.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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