This is the buyer’s opportunity to inspect everything about the property. We recommend using a professional home inspector. Sometimes additional inspections are needed by plumbers, electricians, roofers, etc.
At any time during this period and for any reason the buyer has the right to cancel and get all their deposits back.
After the inspections are completed, but prior to this contingency expiring, the buyer may ask to have repairs done or a credit. A credit is normally an easier solution for the seller and therefore more likely to get approved.
The seller is under no obligation to do any repairs nor give any credit, so it is a negotiating process.
If an agreement is not reached the buyer has the option to cancel and get their deposits back or continue.
Keep in mind the As Is agreement has no impact over this contingency and buyers can still do everything mentioned above even if the As Is was used.
The normal time for this contingency is 7 to 15 days. If it is over 15 days, it will normally be countered.
It is important to understand that if the buyer does not make an election to cancel the Purchase Contract prior to this contingency expiring, then they have waived this contingency. This means even if negotiations are still going on for a repair or credit past the expiration date, then by default the buyer has waived their right to cancel using this contingency.
Additional Search Terms – J1, J-1, J2, J-2