The Inspection contingency
An inspection contingency in Hawaii, Maui or Oahu is a standard contingency for any buyer who is purchasing a home. It gives the buyer the right to cancel escrow without penalty if the buyer discovers aspects of the home not to his or her liking during the contingency period.
A list of typical real estate inspections
As part of the inspection process, the buyer may hire inspection companies to review the condition of the property. Common inspections include the general home inspection and termite inspection. Less common inspections include chimney, sewer, pool/spa and roof inspections.
The process after the inspections
Once the buyer has had the property inspected and reviewed the inspection reports, the buyer may remove the contingency or submit a request for repair. Once buyer and seller reach agreement on any requested repairs, the buyer typically removes the inspection contingency by submitting a contingency removal form.
Once all contingencies are removed, the buyer is effectively saying he or she understands the current condition of the property and is going to close escrow.
Generally sellers should not counter inspection contingencies
Most buyers view the inspection contingency as a must and will not proceed without it. For that reason, we generally do not recommend countering it.
However, we often favor shrinking the length of the contingency period, which effectively takes much of the force out of this contingency.