Inspection Contingency and Known Defects

Member since 2023 · 10 posts · 5 votes

I'm ready to sign an offer to purchase on a property that has water in the basement/foundation cracks. The offer includes an inspection contingency. The contingency states Defects do not includes those the Buyer had actual knowledge or written notice of. (I do have written notice of with Condition Report). My question is if inspection turns up foundation damage will cost much more than what I expect and budgeted for... E.g., will cost $20k, when I estimate $10k.. may I legally void the offer after the inspection? (assuming Seller will not cure).

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Rick Richard:

I'm ready to sign an offer to purchase on a property that has water in the basement/foundation cracks. The offer includes an inspection contingency. The contingency states Defects do not includes those the Buyer had actual knowledge or written notice of. (I do have written notice of with Condition Report). My question is if inspection turns up foundation damage will cost much more than what I expect and budgeted for... E.g., will cost $20k, when I estimate $10k.. may I legally void the offer after the inspection? (assuming Seller will not cure).

This is a question for your attorney.
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Jasmine Williams
Real Estate Consultant · FL · Member since 2024 · 32 posts · 18 votes
2y
@Rick Richard before you sign that offer...are you working with a Realtor? If so, they can definitely show you where your inspection contingency clause is in your contract. A real estate attorney is the only one who can directly answer questions regarding your interpretation of/questions about the clause. Typically, though, the terms are spelled out pretty well...at least I know they are here in our Florida contract. If you do end up needing to ask a real estate attorney questions, it's probably a good idea to start with your title company. If the title company is managing your closing or has worked with you before, they are likely well-versed in the terms of your local contract and often provide answers to simple questions at no cost, as they anticipate future business from you. Hope this helps! Feel free to connect with me if you have any other questions.
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