In New Jersey, the home inspection contingency is one of the most important buyer protections in a contract of sale— and it is also one of the negotiation points that can cause the most tension. As home sellers often have the upper hand in competitive markets, buyers are increasingly offering to waive home inspection findings, excluding major structural ones, in an effort to help their offer's chance of being accepted.
Here, we break down what the home inspection contigency is about:
Attorney Review Comes First
When an offer to purchase a home is accepted, state regulations require a three-business-day attorney review period. During that window, either side’s attorney can review the contract, propose changes, or disapprove it. Weekends and legal holidays do not count.
Attorneys often use attorney review to refine inspection language, timelines, and carve-outs before the contract becomes binding as written.
What the Inspection Contingency Usually Does
In a typical New Jersey contract of sale, once attorney review ends, the buyer has a window — commonly around 10 to 14 calendar days — to complete inspections and deliver written requests to the seller. Exact days are whatever your signed contract says.
During that window, buyers commonly hire inspectors, review reports with their agent and attorney, and decide whether to accept the property, request repairs or credits, or pursue termination rights if the parties cannot agree on defects.
Sellers are not automatically required to fix every item. The contingency typically gives buyers a structured way to raise actual defects and, if no agreement is reached under the contract’s terms, a path to walk away and recover the deposit. The details live in your documents.
Common Inspections in Our Area
Home buyers should plan for more than a general walk-through (except in cases of a tear-down). Depending on the property, inspections often include:
- General home inspection (structure, roof, electrical, plumbing, HVAC, and related systems)
- Wood-destroying insect inspection and mold
- Radon testing
- Underground oil-tank sweep
- Well water testing and septic evaluation, where the home is not on public utilities
- Pool, chimney, or other specialty inspections when those features exist
How Negotiation Usually Feels
Buyers who focus on safety issues, active leaks, failing systems, and expensive deferred maintenance tend to negotiate more productively than buyers who treat every cosmetic note as a demand. Sellers who respond promptly, with clarity about what they will and will not address, keep more deals on track.
Credits are sometimes preferable to last-minute repairs, because the buyer can control the work after closing and hire their contractor(s) of choice. Repairs before closing can still make sense when the issue affects financing or safety. Your attorney and agent can help you weigh the options against your contract language.
Deadlines Matter — and Attorneys Often Soften Them
Standard form language can treat missed deadlines harshly. In practice, attorneys often amend automatic-waiver provisions during attorney review. That does not mean deadlines are optional — stay in close contact with counsel and get extensions in writing when you need them.
Tips for Buyers
- Line up inspectors before attorney review ends
- Attend the inspection if you can in-person, ideally with another person; ask any and all questions
- Prioritize material defects over wish-list upgrades
- Let your attorney send the formal inspection report and requested fixes
Tips for Sellers
- Gather maintenance records, permits, and prior inspection reports early
- Make access to the home easy; turn on all lights
- Expect negotiation; plan financially for some resolution
- Avoid taking every request personally — stay focused on closing
- Consider a pre-listing inspection, where you hire an inspector of your own choosing to go through your home prior to listing, to avoid any unwelcome surprises