Inspection Contingency Question

2 Replies

First off, I'm currently reading The Book on Rental Property Investing by @Brandon Turner and it rocks!  It gives so much more practical advice than most RE books I've read so far.

Now to the question... the inspection contingency allows you to back out if something comes up in the inspection that you didn't expect, but there is ALWAYS going to be something you didn't expect.  Can I back out if I find out a door knob is lose or there is a tear in one of the window screens?  I can't imagine a buyer could back out for minor things like these.  If they could, they would always have a way out because reports are always full of minor issues, even on well maintained homes.  So where is the line? 

@David Hodge , good question for sure.  I'm by no means an expert so I hope others will chime in. As far as the inspection contingency, I believe as long as the seller is willing to rectify the issues either by having it repaired and/or with cash to buyer (or other both-party agreements), then the contract stands.  However, if the sellers say we won't fix the doorknob and you want to fall on that sword then I'm confident you could execute the contingency clause and step away.     I really like the Option contingency in a purchase contract- this allows me to step away for any reason within the Option timeframe.  It's not inspection specific either.