subject to inspection

Definition

The escape hatch in every smart buyer's offer—a contingency allowing them to back out or renegotiate if the inspection reveals the house is held together by hope and termites. It's the 'just kidding' clause of real estate.

Example Usage

We went under contract but it's subject to inspection—if that foundation is cracked, we're out.

Origin

Became standard practice in residential contracts during the 1970s-80s as home inspection industry professionalized

Fun Fact

During hot markets, some buyers waive inspection contingencies entirely, a move that experienced agents call 'brave' and home inspectors call 'job security for us later.'

Source: Real estate contract contingency terminology

Related Terms

Intermediate

land contract

A seller-financed agreement where the buyer makes payments directly to the seller but doesn't receive the deed until paid in full. It's layaway for houses, with all the same risks.

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Intermediate

per door

A valuation metric for multifamily properties calculated by dividing price by number of units, because apparently 'per unit' wasn't jargony enough. It's the real estate equivalent of price per ounce.

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Intermediate

parcel

A discrete unit of land that can be bought, sold, or taxed as a single entity—essentially real estate Legos that local governments use to organize property ownership. It's the official way of saying "this chunk of dirt is yours" with legal boundaries, documentation, and the inevitable property tax bill. Not to be confused with the thing Amazon drops on your doorstep.

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Beginner

homeowner

Someone who has traded the freedom of renting for the privilege of paying property taxes, fixing broken toilets at 2 AM, and obsessing over lawn care. Technically owns a house, but in reality, is owned by a mortgage, maintenance costs, and the HOA. The American Dream™ in human form.

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Beginner

restriction

The legal fine print that tells you what you can't do with your property, crushing dreams of backyard chicken coops and neon pink houses since time immemorial. These are the rules embedded in deeds, HOA bylaws, or zoning laws that limit how you can use or modify property. They're the reason you need to ask permission to build that treehouse in your own yard.

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Beginner

Home Inspection

The process of paying someone $500 to tell you everything that's wrong with a house you already emotionally committed to buying. It's like a medical checkup for your dream home, except the diagnosis is always terrifying.

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ijdl

I just died laughing...