What is the correct answer to: In Washington, the Buyer's Investigation contingency allows:

The correct answer is Buyer to investigate property and request repairs or terminate. Washington's standard Form 35 (Inspection Addendum) and the broader Buyer's Investigation contingency, as used in Northwest MLS contracts, give buyers a specific number of days to conduct any and all investigations they deem necessary, including but not limited to home inspections, pest inspections, sewer scopes, and environmental assessments. If the buyer is unsatisfied with the results, they may submit a Form 35R (Inspection Response) requesting the seller make repairs or provide a closing cost credit, or they may terminate the contract and receive a refund of their earnest money. This right to investigate, negotiate, or walk away is what makes the contingency a powerful buyer protection tool.

What background knowledge is needed for this Contracts question?

The concept of an inspection contingency became standardized in Washington real estate contracts in the 1980s and 1990s as the real estate industry recognized that buyers were routinely discovering undisclosed defects after closing with no contractual recourse. The Northwest Multiple Listing Service (NWMLS) developed standardized forms, including Form 35, to create a uniform process for buyers to exercise investigation rights across all transactions in the region. Prior to standardized contingency language, inspection rights were often negotiated ad hoc, leading to disputes about what the buyer was entitled to inspect and what remedies were available. Today, the Buyer's Investigation contingency is a nearly universal feature of Washington residential purchase and sale agreements.

What is a good way to remember the answer to this Contracts question?

Think of the Buyer's Investigation contingency as the buyer's 'Detective Period' — just like a detective has a window of time to gather all evidence before making a final decision, the buyer has a set number of days to investigate every aspect of the property before committing. The three outcomes — Request, Negotiate, or Terminate — can be remembered as 'RNT' (like 'rent,' which is what the buyer is trying to avoid by making sure the purchase is sound). Visualize a magnifying glass with three exits labeled R, N, and T. Remember the three options within the investigation contingency: Inspect the property, Request repairs/negotiations, or Terminate the contract

What exam tip applies to this Contracts question?

On the Washington real estate exam, questions about the Buyer's Investigation contingency will often try to narrow its scope — watch for answers that limit it to 'only appraisal' or 'only home inspection,' which are both too restrictive. The correct answer will always reflect the broad nature of this contingency, which covers any investigation the buyer chooses to conduct. Also remember that this contingency gives the buyer three distinct options: request repairs, negotiate terms, or terminate — any answer that removes one of these options is likely incorrect.

How does this Contracts concept apply in real world practice?

A couple in Bellevue, Washington, goes under contract on a 1975 split-level home for $850,000 with a 10-day Buyer's Investigation contingency. During that window, they hire a licensed home inspector who discovers the furnace is cracked and poses a carbon monoxide risk, and a sewer scope reveals root intrusion in the lateral line. The buyers submit a Form 35R requesting the seller replace the furnace and credit $4,000 for sewer repairs. The seller agrees to replace the furnace but declines the sewer credit, so the buyers counter-accept the furnace replacement and waive the sewer issue — all within the contingency period. Without this contractual protection, the buyers would have had no leverage to address these serious defects before closing.

ContractsGeneralEASY

In Washington, the Buyer's Investigation contingency allows:

Correct Answer

B) Buyer to investigate property and request repairs or terminate

The investigation contingency allows buyers to inspect the property and either request repairs, negotiate, or terminate the contract.

Answer Options

No inspections

Buyer to investigate property and request repairs or terminate

Only appraisal review

Seller investigations only

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Related Concepts

Counteroffer

A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.

Earnest Money Deposit

Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.

Equitable Title

Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.

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In Washington, the Buyer's Investigation contingency allows:

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