An inspection contingency gives you the right to have the home professionally inspected and to walk away or negotiate repairs if significant issues are found. In Texas, this is typically handled within the option period. The standard TREC contract allows you to terminate if you are not satisfied with the inspection results.
What an Inspection Contingency Means
The inspection contingency means your offer is conditional on a satisfactory home inspection. You hire a licensed inspector to examine the property's structure, systems, and major components. If the inspection reveals major defects (foundation issues, roof problems, HVAC failure, plumbing leaks, etc.), you can request repairs, a price reduction, or terminate the contract and get your earnest money back.
Timeline and Options in Texas
In Texas, the inspection and negotiation happen during the option period (typically 7-10 days). Your option fee is non-refundable but the earnest money is refundable if you terminate. You have the unrestricted right to terminate for any reason during the option period. The seller may agree to repairs, offer a credit, or refuse. If they refuse and the issues are material, you can walk away.