Inspection contingency on new construction situation

9 Replies


I'm in a of a bit if a situation and was hoping someone here might have an answer. I have been under contract for a few months now for a new townhouse that is currently being built. I need the option to get out of the deal now and thought I could use the inspection contingency. Looking at the paper work, it says it must be used with in 7days from mutual acceptance. Well this 7 days passed long ago but the townhouse isn't even done yet. How is this possible? Shouldn't the 7 days start once its complete? You cant inspect a house that doesn't exist yet. Any help or advice would be much appreciate as I do not want to loose my escrow money. If it helps, I'm in Washington state. 



Since you havent been able to inspect the house since it hasnt been built they cant really enforce the clause but at the same time you cant rely on it to get you out of the deal. How much deposit money is at risk? Do you have a mortgage contingency? 

I have 15k in escrow. I do have a financing clause but I do qualify for the loan. Thanks 

A builder isn't going to have an inspection clause in thecontract, after completion.  The contract will state the work will be done "to industry standards, minor defects", etc. and provisions for punch list work.  It will Not have a get out of jail free/changed my mind, inspection clause.  Why on earth would a builder build a house for you, if your contract simply let you change your mind when it was completd?

Thanks for your comments Wayne, I didn't go into the reasons for wanting to back out but basically the construction has been delayed and due to closing on our current home on time, my family will now have to spent several weeks in a hotel. There are other properties that we could buy and close on immediately. There is actually an inspection clause, its just that the "inspection period" was set months before the place was even built that seems odd. Also, this is not a custom home, its a cookie-cutter townhouse.

It's really going to depend on your contract. Read through it carefully. Most buyers have lots of "outs".

It's going to come down to the wording in the contract. Was there a date for completion? If so, and it's gone past that date, were any extensions signed? Definitely talk to a lawyer that can look at the contract and give you advice. This isn't something anyone on here can advise you on with any authority. Good luck. 

thank you everyone for the advice!

Absolutely depends on your contract.  But I'm guessing it was the builder's contract, or at least with their addendum, hence the doubt about you having an inspection clause out, after completion.

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