What is a common reason for a contingency in a home purchase agreement?

What is a common reason for a contingency in a home purchase agreement?

• A. To provide the buyer time to secure financing
• B. To ensure the property is inspected
• C. To guarantee the seller moves out on time
• D. To adjust the purchase price

Answer: (B)

A common reason for a contingency in a home purchase agreement is to ensure the property is inspected. This type of contingency allows the buyer to perform a home inspection and obtain a professional assessment of the property’s condition before finalizing the purchase. If significant issues are discovered during the inspection, the buyer has the right to negotiate repairs, request price reductions, or even walk away from the deal without penalty. Contingencies such as inspection protect the buyer's investment, ensuring they are fully informed about the home they plan to purchase. Additional contingencies may also include securing financing or appraisals, which help the buyer manage their financial risk, but the inspection contingency is specifically focused on assessing the physical condition of the property before closing.

A common reason for a contingency in a home purchase agreement is to ensure the property is inspected. This type of contingency allows the buyer to perform a home inspection and obtain a professional assessment of the property’s condition before finalizing the purchase. If significant issues are discovered during the inspection, the buyer has the right to negotiate repairs, request price reductions, or even walk away from the deal without penalty.

Contingencies such as inspection protect the buyer's investment, ensuring they are fully informed about the home they plan to purchase. Additional contingencies may also include securing financing or appraisals, which help the buyer manage their financial risk, but the inspection contingency is specifically focused on assessing the physical condition of the property before closing.