A contingency clause is a condition or action that must be met for a real estate contract to become binding. A contingency becomes part of a binding sales contract when both parties (i.e., the seller and the buyer) agree to the terms and sign the contract.

An inspection contingency gives buyer the right to have the home inspected within a specified time period. It protects the buyer, who examines the property's interior and exterior, including the condition of electrical, finish, plumbing, structural and ventilation elements before taking the possession.

If the promised conditions are not met by the builder the buyer has the right to request repairs or concession. In many cases, the cost of repair contingency is based on a certain percentage of the sales price.

According to Section 14 (3) of the Real Estate Act,

"The promoter will be obliged to rectify without further charge, within thirty days, any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement of sale."

"The promoter shall be responsible to pay to the aggrieved allottees appropriate compensation in prescribed manner if he fails to rectify any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale."

Some things that you can keep in mind while inspecting your house include,

• Check exteriors of your house for flaking or stains
• Signs of seepage
• Any visible cracks
• Broken window frames/panes
• Door and window latches
• Door locks and knobs
• Condition of front door
• Switchboards are in working condition
• Proper drainage

The move will encourage developers to maintain quality of their constructions at the initial stage as frequent complaints by buyers would cost developers not only money but also their brand image.