Drafting a Contingency for a Structural Inspection

To create a well-drafted contingency for a structural inspection, we need to answer the basic drafting questions thoroughly. Here’s how you can structure the contingency clause based on the provided answers:

1. What is the condition needing the contingency?

   • Answer: This transaction is subject to a home inspection.

2. Who must act?

   • Answer: At the buyer's expense, the buyer may act.

3. What is to be done?

   • Answer: The buyer may have the property and all elements and systems thereof inspected by one or more professionals of the buyer's choice.

4. When must the contingency be satisfied and how?

   • Answer: The buyer may terminate the transaction by delivering a written notice of disapproval of the inspection report to the seller or the seller's agent within seven business days after the date this agreement is signed.

Complete Contingency Clause

"This transaction is subject to a home inspection. At the buyer's expense, the buyer may have the property and all elements and systems thereof inspected by one or more professionals of the buyer's choice. The buyer must deliver a written notice of disapproval of the inspection report to the seller or the seller's agent within seven business days after the date this agreement is signed if the buyer wishes to terminate the transaction based on the inspection findings."

Explanation

• Condition: The transaction depends on the outcome of a home inspection.
• Who Must Act: The buyer is responsible for arranging and paying for the inspection.
• What Must Be Done: The buyer can have the property inspected and must act on the results of that inspection.
• When and How: The buyer has a seven-business-day window to review the inspection report and notify the seller in writing if they wish to terminate the transaction.