When buying a property, a home inspection is a crucial step in the process. It can reveal any hidden defects or potential problems with the property that could end up costing you a lot of money to fix in the long run.
However, what happens if the inspection results are not what you were expecting? Can you cancel the contract? The short answer is yes, but there are some important things to keep in mind before doing so.
Firstly, it`s important to understand that most contracts contain a contingency clause that allows you to cancel the contract based on the results of the inspection. This means that you have the right to back out of the deal if the inspection reveals any significant issues that you are not comfortable with.
However, it`s crucial to review the contract and the contingency clause before signing it. Make sure you fully understand the terms and conditions of the contract and what your rights are if something goes wrong during the inspection.
Secondly, if you do decide to cancel the contract based on the inspection results, you need to do so in writing and within the timeframe specified in the contingency clause. Typically, this timeframe is around 10 days, but it can vary depending on the terms of the contract.
It`s also important to be specific about the reasons for canceling the contract and to provide copies of the inspection report to support your decision.
Lastly, if you do cancel the contract, you may be entitled to a refund of your earnest money deposit. However, this will depend on the terms of the contract, so be sure to review it carefully.
In summary, canceling a contract after an inspection is possible, but it`s important to fully understand the terms of the contract and the contingency clause. Be specific when canceling the contract and make sure to do so within the specified timeframe. And remember, if you do cancel the contract, you may be entitled to a refund of your earnest money deposit.