Question about backing out during inspection contingency

[Gorden Lopes]

Hello folks!

This forum has really helped me a lot as I go through my first deal of buying a SFR in Huntsville Alabama. I will definitely post more details about the numbers and what the final outcome later but in the mean while I need some more help from my fellow members.

During this inspection contingency period I asked my realtor if I can back out of this deal in case I am not happy with the inspection, my realtor mentioned that I will loose my earnest money if I don't give the seller the option to fix the issues that came up in the inspection. This sounded odd as I had read on the BP forums that the buyer can back out without loosing earnest money during inspection contingency phase.

I re-read the inspection addendum and realized that there is indeed nothing written about the right of the buyer to walk off during inspection contingency. See the attached pic. 

What I am not sure is, is the attached addendum not a norm? is my agent lying to me? Or is it just me who is too paranoid and nervous about my first deal!

Does the buyer specifically has to ask the agent to put the clause of "walking off without any reasons" in the contingency ?

Responses from experienced investors might help other newbie investors like me who read this forum often and are just about to buy their first property!

Thanks once again to the community for empowering normal 9 to 5ers like me in buying my first rental property!

[Tom Gimer]

Big difference between an Inspection Contingency in a Realtor contract form and a general inspection contingency that benefits the buyer alone.

The former has the goal of keeping the deal together while the latter provides the buyer with the unilateral right to walk away.

Read and understand what you are agreeing to.