What purpose does an inspection contingency serve in a real estate contract?

An inspection contingency in a real estate contract serves a critical purpose by allowing the buyer to negotiate repairs based on the results of a property inspection. This clause provides the buyer with the right to have the property examined by a professional inspector after the contract is signed but before the sale is finalized. If the inspection reveals issues that need addressing, the buyer can bring these findings to the seller and negotiate necessary repairs or adjustments to the sale terms. This negotiation might include asking the seller to perform repairs, offering a credit toward closing costs for the buyer, or even renegotiating the sale price based on the inspection results. Ultimately, this contingency is designed to protect the buyer's interests by ensuring they are fully aware of the property's condition before completing the purchase.