Buying a home
Home Inspections and Contingencies When You Buy in the Sacramento Region
How inspection, appraisal, loan and insurance contingencies protect you, and which inspections to order in this region.
What is a contingency in a home purchase?
A contingency is a condition in your contract. If the condition isn't met, you can cancel within the time allowed and usually get your deposit back. The CFPB (page last modified December 12, 2024) suggests making your offer contingent on getting financing and on a satisfactory inspection, so you aren't required to buy if the loan falls through or serious problems turn up.
Each contingency has a deadline counted from the day the offer is accepted. The deadlines are written in your contract and are negotiable.
This is general information, not legal advice. For questions about your rights under a specific contract, talk with a real estate attorney.
What does the inspection contingency cover?
The inspection contingency gives you time to investigate the home. That includes its condition, the seller's disclosures, permits, HOA documents if there are any, and anything else that affects your decision.
During that window you can:
- Order inspections and read the reports.
- Ask the seller for repairs, a credit or a lower price.
- Cancel if what you learn changes your mind.
Read the seller's disclosures with the same care as the inspection. Our guide to seller disclosures in California shows what sellers must tell you.
How do the appraisal and loan contingencies protect you?
The appraisal contingency protects you if the home appraises below your price. You can renegotiate, bring more cash or cancel while it's in place. Our offer guide walks through an appraisal gap.
The loan contingency protects you if your loan isn't approved. Once you remove it, losing your financing for most reasons no longer lets you cancel without risk to your deposit.
Remove each one only after you're sure. For the loan, that usually means the lender has reviewed your file and the appraisal is in. Our page on the mortgage process shows the order the loan moves in.
Why do you need to check insurance before you remove contingencies?
Homeowners insurance has become harder to get in parts of California, especially in higher wildfire-risk areas in the foothills. Your lender will require it, and the price can change your monthly cost.
Get real quotes during your inspection period, not after. If coverage is hard to find, you'll know while you can still renegotiate or cancel. Some contracts handle insurance inside the inspection contingency rather than as its own line, so ask how yours is written.
Our guide to homeowners insurance, the FAIR Plan and wildfire risk explains your options.
How do you remove contingencies, and what is a Notice to Perform?
In California purchase contracts, contingencies are usually removed in writing, on a signed form your agent delivers to the seller's side. Don't assume silence removes them. Read your contract, because the forms spell out what happens when a deadline passes.
If you don't remove a contingency or cancel by its deadline, the seller can typically send you a Notice to Perform. It gives you a short, set time to act. If you still don't act, the seller may be able to cancel the contract. The exact rules are in your contract, so read them with your agent.
A good habit: put every deadline on your calendar on the day you go into contract. Our buying timeline shows where each one usually falls.
When is your deposit at risk?
Your deposit is most protected while your contingencies are still active and you cancel within their deadlines. It's at more risk once you've removed them, or if you miss deadlines in the contract.
Examples, in words:
- You cancel during the inspection period after a report shows a costly roof problem. Your deposit is generally protected under the contract.
- You remove all contingencies, then change your mind. The seller may have a claim to your deposit, subject to the contract and California law.
Under California Civil Code section 1675 (checked October 22, 2026), if you agreed to a liquidated damages clause on a one-to-four unit home you'll live in, an amount up to 3% of the purchase price is presumed valid. Release of a deposit usually requires signed instructions from both buyer and seller to escrow.
Which inspections should you order in the Sacramento region?
Every home is different. Here's the list we start with:
- General home inspection. Structure, roof from the ground or on it, plumbing, electrical, heating and cooling, water heater, attic and crawlspace.
- Wood-destroying pest (termite) inspection. Done by a licensed structural pest control company. The report usually separates active damage from conditions likely to lead to damage later.
- Roof inspection. Worth it when the roof is older or the general inspector flags it. Insurance companies look at roof age too.
- Sewer lateral video inspection. A camera runs down the pipe from the house toward the street. In areas served by the Sacramento Area Sewer District, SacSewer says (checked October 22, 2026) the property owner maintains the upper lateral on private property and SacSewer maintains the lower lateral. Older homes with mature trees are worth a look.
- Pool and spa inspection if there's a pool.
- Septic and well inspections for rural homes in places like El Dorado County, the Placer foothills or rural Sacramento and Yolo counties. Our guide to septic, wells and rural properties covers what to test.
- Specialists as needed: foundation, chimney, HVAC, electrical panel, mold, or a contractor to price repairs.
Also check the flood zone. See our flood zones guide.
What should you ask for after the inspection?
Focus on the items that matter: safety, water, structure, roof, sewer, and big systems near the end of their life. Small cosmetic items rarely belong on a repair request.
You can ask for:
- Repairs by licensed contractors, with receipts before closing.
- A credit toward closing costs, if your loan allows it, so you control the repair.
- A price reduction.
A credit is often simpler than repairs, because you choose the contractor. Get written bids so your request is based on real numbers.
How do you get started with inspections and contingencies?
Line up your inspectors and your lender before you write an offer. Then your contingency periods can be shorter and still realistic. Maggie B. Hopkins and Rachel Dee Minyard can share questions to ask each inspector and help you read the reports.
Send us a note or call Maggie's cell at (916) 549-3131. The free buyer guide has the whole process in one place.
Frequently Asked Questions
How long is the inspection contingency in California?
It's whatever your contract says. Standard forms set a default number of days, and you can negotiate it shorter or longer. We set it to match when your inspectors can come out.
Do contingencies go away on their own?
Don't count on it. California contracts usually require removal in writing, and the seller can send a Notice to Perform if you miss a deadline. Read how your contract handles it.
What is a Notice to Perform?
It's a written notice from the seller giving you a short time to remove a contingency or take another required step. If you don't act, the seller may be able to cancel.
Do I need a termite inspection in Sacramento?
It's a smart idea on most homes. A licensed structural pest control company checks for wood-destroying pests and conditions likely to cause damage later.
Who is responsible for the sewer lateral?
In areas served by SacSewer, the property owner maintains the upper lateral on private property and SacSewer maintains the lower lateral. Other areas may differ, so we check who serves the home.
Should I waive the inspection to win?
We rarely recommend it. You can keep an inspection and still make a strong offer with a shorter period and fewer small requests.
When should I get insurance quotes?
During your inspection period. If coverage is hard to find or costly, you'll still have time to renegotiate or cancel.
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