Newbie Question on Offers, Earnest, etc.

[Alex Huang]

I am still not 100% clear on the offer and inspection process and was hoping to get some clarification. I suppose the easiest way to have any misinformation addressed would be to lay out what I think the process is:

1. Property XYZ is listed on the MLS
   
2. I am interested in the property, so I go ahead and contact the listing agent and make an offer, stating that the offer is contingent upon inspection and attorney review
   
3. Once a price is reached, I get the standard 3-7 days (whatever is agreed upon) to do my inspection, etc. This blocks other people from making offers and puts me in the driver's seat to getting the property.
   
4. If my inspection turns up something catastrophic (eg termites, mold, etc), then I am able to rescind my offer and get 100% of my earnest money

I guess my biggest concerns are:

• When is my earnest money at risk? My understanding is only when I, the buyer, go beyond my permitted window to conduct an inspection and try to walk away from the deal? Or if the inspection is done and nothing major is discovered to justify walking away?
• I see a lot of terms like "as-is". Is that synonymous to no inspection allowed? Is the buyer always granted the right to inspection (unless otherwise explicitly stated) for all MLS listings (foreclosures included)? I know Sheriff Sales are an exception, but wasn't sure about other bank-owned stuff.