What to Check in a Home Inspection Clause

A "subject to building inspection" (or "subject to survey") condition in your pre-purchase agreement gives you a way out—and a chance to renegotiate or walk away—if the inspection reveals major issues. If the clause is vague or missing, you might be stuck with a property that has serious defects. Here's what to check in a home inspection clause before you sign.

What the clause should say

• Subject to inspection. You can withdraw (and get your deposit back) if the inspection reveals defects or issues that you're not willing to accept. The clause should say that explicitly.
• Deadline. By when must the inspection be done? By when must you notify the seller of any issues or that you're withdrawing? If there's no deadline, the seller can pressure you to waive the condition early—or the condition can drag on.
• Scope. What kind of inspection? Building only, or also pest, structural, electrical? The clause might say "subject to satisfactory building inspection"—push for "subject to building inspection by [date]; buyer may withdraw if inspection reveals [major defects / defects costing more than X to remedy]." That gives you a clearer trigger.
• Who pays. Who pays for the inspection—you or the seller? Usually the buyer pays; the clause should be clear.

What to look for

• Don't waive too early. Don't waive the inspection condition until you've had the inspection done and are happy with the result. If the seller pressures you to waive "to speed things up," resist—you're giving up your escape route.
• Use a qualified inspector. Hire a licensed or certified building inspector (or structural engineer if needed). Their report is your evidence if you need to withdraw or renegotiate.
• BeforeYouSign can highlight inspection and condition clauses in your pre-purchase agreement so you know what you're agreeing to—and what your options are if the inspection reveals issues.