What is the risk of removing inspection contingency from home purchase agreement?

UPDATED: Oct 1, 2022

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What is the risk of removing inspection contingency from home purchase agreement?

We are considering buying a home and are
having trouble quantifying the risk/impact of
waiving the physical property contingencies
from our bid. We want to write as competitive
an offer as we can but want to be sure we
understand clearly what we are giving up, what
we stand to lose.

Asked on October 24, 2017 under Real Estate Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If a problem appears or is discovered during inspection, even if it is a "deal breaker" or finanically unsupportable for you, you will not be able to use it to get out of the purchase or at least as leverage to get some cost concessions; rather, without an inspection contingency, you will have to go through with the sale no matter what. Some things an inspection could uncover, like--
* asbestos
* serious or widespread mold
* "knob-and-tube" wiring
* foundation or structural issues
* a roof or furnace that needs to be replaced
* a decommissioned (but not removed, and possibly leaking) oil tank
--could easily cost many thousand, or even several tens of thousands, of dollars to remediate; you would be exposing yourself to those costs.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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