An inspection contingency addendum is an attachment to a home purchase agreement that covers inspections of the property. Buyers and sellers use it to agree how a home inspection fits into the sale. Create your addendum online with the FormsPal template below, or download it as a PDF or Word file.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current law. If you notice an error or outdated information, please contact us.
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This addendum to real estate purchase contract allows the buyer of a real estate property to get out of their purchase agreement if they happen to find defects in the property. The buyer will not typically inspect the home themselves. An inspector, electrician, or plumber will perform an inspection and then let the buyer know if everything looks good.
If problems are found, the buyer and seller will need to negotiate and come to new terms about the property. If new terms cannot be met, the buyer can release themselves from the printable real estate sales contract and receive their earnest money deposit back.
The buyer can also waive any objections if the seller chooses not to renegotiate the terms of the transaction. It’s up to the buyer if they want to go ahead with the sale or not.
The inspector’s report gives both sides the facts they need to talk about repairs, price or next steps. Keep these papers with your copy of the addendum:
This document will help the buyer know if there are any existing problems within the home or property. It will save them money from having to fix various things in the home they are buying. It will also allow them to know the condition of their property when they buy it.
The inspection contingency allows buyers to back out of the purchase agreement for a variety of reasons, even small ones. Inspection contingencies can add stress to the seller by not knowing for sure if they will be able to sell their home.
Some people will also be wary of selling to buyers who want strict inspections. They may be less likely to agree to the purchasing terms or choose not to take their home off the market.
A home inspection is a check of the property’s condition by a trained inspector. It shows the buyer what is in good shape and what needs work before the sale moves forward. The lists below show the items an inspection usually looks at.
A home inspection will cover a basic check of the infrastructure and foundation of the home. Make sure the following interior and exterior items are always checked:
A plumbing inspection should include:
Electrical inspections will include:
All home appliances that will be left in the home need to be inspected including the washer and dryer if they are staying.
Garages will also need to be inspected:
Home inspections vary by state and local guidelines. However, most home inspections do not cover:
Check with your state’s guidelines. Inspection contingencies can also include hiring a specialist to inspect some of the items on the list above. Keep in mind that home inspectors are not allowed to discuss or decide about inspections that they do not specialize in.
If you find the property needs to be repaired, you have a few options. First, you will need to decide if you are still willing to live in and buy the home based on the repairs that are needed. For example, some buyers choose not to go ahead with the closing if mold or certain pests are found.
The options below are explained in the next two sections.
If the seller agrees to pay for the repairs, there are a few options for getting the money. First, the seller can credit you back a portion of the purchase price. This means that you will need to come to an agreement on how much the repairs may cost. Make sure you have a very accurate estimate if you are choosing to go this route.
The money will usually be transferred to you directly or into an escrow account for you to draw on after the closing.
You can also choose to ask the seller to reduce the sale price by the estimated repair cost. Instead of you paying the full price and then getting some of the money back for repairs, you will simply pay the price for the house after repair costs have been deducted.
This is a good option if some of the repairs are flexible and you aren’t in a hurry to pay to get them all done at one time or before the move-in date.
Some people choose to trust the seller to complete the repairs themselves before closing. This isn’t recommended unless the repairs are very simple and not serious. The seller may also try to do the repairs themselves or hire someone to do a very cheap job.
You can also choose to hire someone to do the repairs and just have the seller pay the company directly. Make sure you get a quote of the amount before having someone start any repairs. You will want to make sure the seller is okay with the repair costs and willing to pay them.
In some cases, the seller will not pay for repairs or is not required to pay for certain repairs. You will need to determine if you are willing to pay for the repairs yourself and if you still want to buy the property.
In this case, you can plan to do the repairs yourself before you move in or afterward. Some lenders will give buyers larger mortgages if they must do repair work to help you pay for the work.
These steps follow the FormsPal Inspection Contingency Addendum template on this page, one part of the form at a time. Only a few blanks need your entries, so filling it in takes a few minutes. If you download the PDF, you can complete it with FormsPal’s PDF editor.
The screenshots under each step show the FormsPal Inspection Contingency Addendum template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
These answers cover the most common questions about the inspection contingency addendum and the FormsPal template. Use them together with the guide above and the step-by-step instructions for filling in the form.
An inspection contingency addendum is an attachment to a home purchase agreement that covers inspections of the property. It is signed by the buyer and the seller and kept with the purchase agreement.
The template has a Feasibility Deadline blank on page 1. Enter the date there. The steps above show where it sits.
The signature blocks are on page 3 of the template. Each party signs on the By line and prints a name and title below it.
A home inspection usually checks the main parts of the property. The lists in the guide above show the full range of items. The main groups are:
Yes. Use the Create My Document button to answer a few questions and build the addendum online. You can also download the PDF or Word file and fill it in yourself.
General information, not legal or tax advice.
