Home Inspection Rider: Do You Need It?

February 23, 2021

Homebuyers and their lenders want assurance that their money is invested in a property that is worth the investment. This means that the house shouldn’t have any major repairs that new owners may need to take care of.

A home inspection in Jacksonville FL, gives this assurance, as the inspector looks for major issues and gives an overall report on the condition of the house. This is why some buyers include home inspection riders in their purchase contracts. 

Explaining home inspection rider

A home inspection rider or contingency is a clause in a real estate purchase contract that requires a home inspection to be conducted with the sale closing depending upon the result of the said inspection. This kind of clause protects the buyers and their lenders from making a bad investment, giving them the power to walk away from a property without a penalty. Buyers can also negotiate the final repairs with the inclusion of this clause. 

How does the inspection rider work?

When a purchase contract contains this clause, it is not binding unless the home inspection conducted is satisfactory. This gives the buyer the power to cancel the deal if the inspection revealed repairs they are not willing to take up. While this protects the interests of the buyer, the seller is often left hung dry. 

This is why these contingencies also come with an expiry date, during which buyers need to have an inspection conducted. Not doing so can lead to them losing their deposit money should they decide to cancel the purchase.

Should this clause be included in your contract?

 When buying a house, it is always safe to have a home inspection rider in the purchase contract. However, even if you don’t have this clause, be sure to conduct a home inspection before you close the deal. In Florida, the chances of termites and damages due to humidity in a house are high. Therefore, a home inspection can prevent buyers from making the wrong investment. 

Releasing the rider clause

Florida’s real estate laws make it mandatory to have a definite termination date for any contingency placed in the purchase contract. This could span from 72 hours to a few weeks. As mentioned before, buyers need to conduct the inspection and get the reports within this timeframe to avoid losing their deposit when they try to cancel the deal. 


Conducting a home inspection is an important step during any property purchase. Having a contingency clause in the purchase contract on this inspection gives buyers the power to walk away from a deal without losing their deposit. However, this is only applicable if the inspection is conducted and its report is received within the agreed releasing period.

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