Best examples of purchase agreement examples with inspection period (real clauses that work)

Real‑world examples of purchase agreement examples with inspection period

Most people only see one or two contracts in their life, then try to guess what “standard” inspection language should look like. That’s risky. Looking at real examples of purchase agreement examples with inspection period language gives you a feel for what’s normal in the market and what’s negotiable.

Across industries, the pattern is similar:

• A defined inspection window (often 5–30 days)
• Buyer access and testing rights
• A clear process if defects or issues are found
• A way to back out or renegotiate

Let’s walk through concrete examples in different types of deals.

Residential real estate: examples of inspection period clauses buyers actually use

Residential real estate is where most people first encounter an inspection period. In the U.S., standard forms from state realtor associations often include inspection contingencies by default.

Here’s an example of purchase agreement inspection period language for a single‑family home:

Sample Clause – Residential Inspection Period
“Buyer shall have a period of ten (10) business days following the Effective Date (the ‘Inspection Period’) to conduct, at Buyer’s expense, any inspections of the Property deemed appropriate by Buyer, including but not limited to general home, roof, pest, mold, radon, and sewer line inspections. Buyer and Buyer’s inspectors shall have reasonable access to the Property upon at least twenty‑four (24) hours’ notice to Seller.

If Buyer is dissatisfied with the condition of the Property for any reason, Buyer may, prior to the expiration of the Inspection Period, (a) terminate this Agreement by written notice to Seller, in which case the Earnest Money shall be returned to Buyer; or (b) deliver to Seller a written request for repairs or a purchase price reduction. If the parties do not reach a written agreement regarding such repairs or price reduction within five (5) days after Seller’s receipt of Buyer’s request, Buyer may terminate this Agreement by written notice to Seller, and the Earnest Money shall be returned to Buyer.”

Why this works:

• The buyer’s right to walk away is broad (“for any reason”) but tied to a clear deadline.
• It spells out what happens to the earnest money.
• It gives a negotiation window for repairs or credits.

In hot 2024–2025 housing markets, you’ll also see “information‑only” inspection periods, where the buyer inspects but agrees not to demand repairs. An example of that style:

“Buyer may conduct inspections during the Inspection Period for Buyer’s information only. Buyer shall not request repairs or a price reduction but may terminate this Agreement prior to the end of the Inspection Period if Buyer is dissatisfied with the Property, in which case the Earnest Money shall be returned to Buyer.”

This is a good reminder that examples of purchase agreement examples with inspection period language can be very seller‑friendly or buyer‑friendly depending on market conditions.

Commercial property: longer inspections, more specialists

Commercial deals typically involve longer inspection periods and more technical due diligence: environmental, zoning, leases, financials, and sometimes structural engineering.

Here’s a best example of purchase agreement inspection period clause for a small office building:

Sample Clause – Commercial Due Diligence and Inspection Period
“Buyer shall have a period of thirty (30) days following the Effective Date (the ‘Due Diligence Period’) to inspect the Property and review all documents and information related to the Property, including but not limited to leases, service contracts, operating statements, environmental reports, surveys, and title matters. Buyer and its agents shall have reasonable access to the Property during normal business hours upon at least forty‑eight (48) hours’ prior notice to Seller.

During the Due Diligence Period, Buyer may, at Buyer’s expense, obtain a Phase I Environmental Site Assessment, property condition report, and any other inspections or studies deemed appropriate by Buyer. If Buyer determines, in Buyer’s sole discretion, that the Property is unsatisfactory for any reason, Buyer may terminate this Agreement by written notice to Seller prior to the expiration of the Due Diligence Period, whereupon the Earnest Money shall be returned to Buyer and the parties shall have no further obligations hereunder.”

In these examples of purchase agreement examples with inspection period for commercial assets, the phrase “sole discretion” is common and powerful. It gives the buyer maximum flexibility to walk away based on physical condition, tenant quality, or financial performance.

For updated guidance on environmental inspections, many attorneys and investors still reference the U.S. Environmental Protection Agency’s information on Phase I assessments and “all appropriate inquiries” at epa.gov.

Vehicles: simple but high‑stakes inspection language

Used car and truck deals increasingly happen across state lines, often sight‑unseen. An inspection period can protect the buyer when the vehicle arrives.

Here is an example of purchase agreement inspection period for a used vehicle sale between private parties:

Sample Clause – Vehicle Inspection
“Buyer shall have a period of three (3) calendar days following delivery of the Vehicle to Buyer (the ‘Inspection Period’) to have the Vehicle inspected by a licensed mechanic at Buyer’s expense. If the inspection report identifies any material mechanical defect with an estimated repair cost exceeding Five Hundred Dollars ($500), Buyer may, prior to the end of the Inspection Period, (a) terminate this Agreement by written notice to Seller and return the Vehicle, in which case Seller shall refund the Purchase Price to Buyer; or (b) request in writing that Seller either repair such defects or reduce the Purchase Price by the estimated repair cost. If the parties do not reach written agreement within three (3) days after Seller’s receipt of Buyer’s request, either party may terminate this Agreement by written notice.”

These examples of purchase agreement examples with inspection period for vehicles usually:

• Tie the buyer’s rights to a written inspection report
• Define what counts as “material” (here, a dollar threshold)
• Set a short, clear window for decisions

Manufacturing equipment and machinery: performance testing as inspection

For heavy equipment, the inspection period often includes performance testing, calibration checks, and sometimes third‑party certifications.

A best example of language for a used CNC machine purchase might look like this:

Sample Clause – Equipment Inspection and Acceptance Testing
“Buyer shall have a period of fifteen (15) days following installation of the Equipment at Buyer’s facility (the ‘Inspection and Testing Period’) to inspect and test the Equipment. During the Inspection and Testing Period, Buyer shall operate the Equipment in the ordinary course and may perform reasonable acceptance tests consistent with the manufacturer’s specifications.

If the Equipment fails to operate in material conformity with the specifications attached as Exhibit A, Buyer shall notify Seller in writing prior to the expiration of the Inspection and Testing Period, specifying the non‑conformities. Seller shall have ten (10) days after receipt of such notice to repair or replace the non‑conforming components. If Seller is unable or unwilling to correct the non‑conformities within such period, Buyer may, as Buyer’s sole and exclusive remedy, either (a) accept the Equipment with an agreed price reduction, or (b) reject the Equipment and terminate this Agreement, in which case Seller shall remove the Equipment at Seller’s expense and refund all amounts paid by Buyer.”

These examples of purchase agreement examples with inspection period for industrial assets often limit the buyer’s remedies after the inspection window closes, so buyers need to be diligent about testing within the stated period.

Online businesses and digital assets: data‑driven inspection periods

Digital deals—like buying an e‑commerce store, SaaS product, or domain portfolio—use inspection periods too, but the focus is on data, code, and intellectual property.

Here’s an example of purchase agreement inspection period for a small online business acquisition:

Sample Clause – Digital Asset Due Diligence Period
“Buyer shall have a period of twenty‑one (21) days following the Effective Date (the ‘Due Diligence and Inspection Period’) to review and verify, at Buyer’s expense, all financial, technical, and operational aspects of the Business, including but not limited to website analytics, advertising accounts, customer data (in anonymized form where required by law), supplier agreements, intellectual property registrations, source code, and hosting arrangements.

During the Due Diligence and Inspection Period, Seller shall provide Buyer with reasonable access to read‑only analytics data and financial records and shall make key personnel reasonably available for questions. If Buyer determines, in Buyer’s sole discretion, that the Business is not satisfactory for any reason, Buyer may terminate this Agreement by written notice to Seller prior to the expiration of the Due Diligence and Inspection Period, in which event the Deposit shall be returned to Buyer and neither party shall have further obligations hereunder.”

Because privacy and data protection rules keep tightening globally, parties often cross‑check these clauses against regulatory guidance. For instance, U.S. businesses frequently review resources from the Federal Trade Commission at ftc.gov to avoid mishandling consumer data during inspections and due diligence.

Earnest money and deposits: how inspection periods protect your cash

Most examples of purchase agreement examples with inspection period hinge on what happens to the deposit if the buyer walks away.

Common patterns include:

• Deposit fully refundable if the buyer cancels in writing before the inspection period expires
• Deposit becomes non‑refundable after the period, except for seller default or title issues
• Partial non‑refundability in competitive markets

Here is an example of clear deposit language tied to inspection:

“If Buyer terminates this Agreement in accordance with the Inspection Period provisions set forth herein, the Earnest Money shall be promptly returned to Buyer, and neither party shall have further liability to the other, except as expressly stated to survive termination. If Buyer fails to terminate this Agreement prior to the expiration of the Inspection Period, the Earnest Money shall become non‑refundable to Buyer, except in the event of Seller’s default or failure of the title contingency.”

This is where a lot of disputes arise. The American Bar Association and state bar associations regularly remind practitioners that clarity around deadlines and notice requirements is critical. While not specific to any one form, their contract drafting guidance at americanbar.org is a helpful touchpoint for lawyers and sophisticated parties.

2024–2025 trends affecting inspection periods

The last few years have changed how parties negotiate inspection rights. When you look at examples of purchase agreement examples with inspection period drafted recently, a few patterns stand out:

• Shorter periods in hot markets. In competitive U.S. housing markets, buyers sometimes accept 3–5 day inspection windows or waive them altogether to win bidding wars. That increases risk for buyers and makes pre‑offer walk‑throughs and pre‑inspections more common.
• Remote and hybrid inspections. For both real estate and equipment, buyers are increasingly relying on video walk‑throughs, drone footage, and digital reports from third‑party inspectors.
• Environmental and energy concerns. More buyers are ordering energy audits, radon tests, and environmental screenings, especially for commercial and multifamily properties. Guidance from the U.S. Department of Energy at energy.gov has made energy audits more standard in due diligence checklists.
• Cyber and data checks for digital deals. In tech and SaaS acquisitions, inspection periods now routinely include cybersecurity assessments, penetration testing (with prior agreement), and data compliance reviews.

If you’re drafting or negotiating today, use real examples of purchase agreement examples with inspection period from the last year or two as your reference point. Older templates often ignore newer risk areas like data security and environmental liability.

Drafting tips: using these examples without copying them blindly

Looking at the best examples of purchase agreement inspection period clauses is helpful, but copying them word‑for‑word can backfire if they don’t fit your deal.

When adapting any example of an inspection period clause:

• Match the inspection window to reality. If you need lab tests, environmental reports, or complex testing, three days is fantasy.
• Be specific about access: notice required, hours, who can enter, and insurance requirements for inspectors.
• Tie rights to written notice. Almost all good examples of purchase agreement examples with inspection period require written notice to terminate or request repairs.
• Decide how broad the buyer’s discretion should be. “Sole discretion” is powerful. “Only if defects exceed $X or relate to Y systems” is narrower.
• Align inspection language with other parts of the contract: deposits, financing contingencies, title review, and closing conditions.

This is also the point where a local attorney earns their fee. Laws about disclosures, inspections, and remedies vary by state and country. Many buyers and small business owners use public legal education resources from law schools (for example, Harvard Law School’s legal resources and similar university sites) to understand the basics before talking to counsel.

FAQ: examples of inspection period questions buyers and sellers ask

Q1: Can you give an example of a very short inspection period that still protects the buyer?
Yes. In a hot residential market, a buyer might agree to a five‑day inspection window but keep broad termination rights. For instance: “Buyer shall have five (5) calendar days following the Effective Date to conduct inspections of the Property. Buyer may terminate this Agreement for any reason by written notice to Seller received prior to 5:00 p.m. local time on the last day of the Inspection Period, in which case the Earnest Money shall be returned to Buyer.” Even short examples of purchase agreement examples with inspection period clauses work if the right to cancel is clear and the deadline is realistic.

Q2: Do sellers ever get inspection rights in a purchase agreement?
Yes. In some equipment, industrial, and business asset deals, the seller reserves the right to inspect the buyer’s facility before installation, or to inspect records to confirm post‑closing earn‑out calculations. Those aren’t inspection periods in the classic sense, but they use similar access and notice language.

Q3: Are there examples of inspection period clauses that automatically extend?
Sometimes. You’ll see language saying the inspection period extends if the seller causes delays or if third‑party reports (like environmental tests) are not delivered on time. For example: “If Seller fails to provide Buyer with the Existing Environmental Reports within five (5) days after the Effective Date, the Due Diligence Period shall be extended on a day‑for‑day basis until such reports are delivered.” These examples of purchase agreement examples with inspection period are common in complex commercial deals.

Q4: Can parties waive inspections after signing the agreement?
Yes. A buyer can waive the inspection contingency in writing, often to move the deal forward faster. Many contracts state that if the buyer does not deliver a termination or repair request before the inspection period expires, the contingency is deemed waived. That’s why the notice deadline language in all these examples matters so much.

Q5: Where can I find more real examples of purchase agreement inspection period clauses?
Public court filings, recorded real estate documents in some counties, and sample forms from state realtor associations are good starting points. Law school libraries and business law clinics often publish sample agreements and commentary, and government or university resources (for instance, business law sections on .gov and .edu sites) can help you understand the policy and risk issues behind the sample language.

Use these examples of purchase agreement examples with inspection period as a drafting toolkit, not a script. Tailor the timing, access, and remedies to the deal in front of you, and then have a qualified attorney in your jurisdiction tighten the language so it fits your law and your risk tolerance.