From the course: Real Estate Contracts

Solidifying in legal terms, the inspections, and current conditions

From the course: Real Estate Contracts

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Solidifying in legal terms, the inspections, and current conditions

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- [Instructor] Section seven, condition of premises. In this section, you're basically stating that as the buyer, you have viewed the property in its current condition and have done an onsite inspection. This is mainly a liability release clause. Section eight, inspection contingency. This section of the contract is powerful. This clause gives you additional time to verify and fine-tune your numbers, use your deal analysis tools and dial in your rehab budget. Give yourself a comfortable inspection period for completing your due diligence. I recommend at least 10 days if you can negotiate this with the seller. When you write an all cash offer to purchase a property, your inspection contingency is your only contingency to terminate the contract and get your earnest money deposit refunded to you. Inspection contingencies are used when you want your partners, contractors, engineers, inspectors or other individuals to check out the property prior to making a final decision to fully execute the contract. This section also gives you the ability to renegotiate or cancel the contract after a thorough inspection or if you uncover issues that negatively impact your ability to follow through with the purchase.

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