How does this contingency work in a contract?

[Carl Flint]

Hi

This is all hypothetical... I'm just curious to know how this aspect of closing on a house works.

If I write in a 10 day inspection contingency in my contract does this give me the ability to back out of the contract for any reason?

For example, lets say I'm wholesaling a house. I have a contract with a seller but can't find a cash buyer (and I can't purchase the house myself) can I back out of the contract on day 9 to save my earnest money?

[Aaron W.]

@Carl Flint There really is not a list of justification. It really can be for any reason. However, if you have a 10 day inspection contingency and don't do an inspection, it may look a little strange but not out of the question. There are infinite reasons why someone backs out of the property. You really should go into a deal with the intention of successfully closing on it with the seller, whether it is you buying it, flipping it, or wholesaling it. 

If someone backs out of too many deals for no real reason, then a reputation MAY form that they do not close and  brokers and sellers may start to disregard their offers.

Best of luck!