Yes. A buyer can back out after a home inspection in Washington if the inspection contingency is still active and the proper notice is delivered before the deadline.
Under Northwest MLS Form 35, the inspection contingency gives the buyer a defined period of time to evaluate the property and decide how to proceed. During that timeframe, the buyer may approve the inspection, request modifications, or terminate the agreement.
To terminate the agreement, the buyer must deliver written notice of disapproval using the appropriate form, typically Form 35R, before the inspection deadline. If that notice is delivered correctly and on time, the agreement is terminated under the inspection contingency.
What Happens to Earnest Money?
When a buyer terminates under the inspection contingency within the allowed timeframe, the buyer is generally entitled to a return of earnest money under the terms of the agreement.
In practice, the earnest money is released through escrow after both parties sign a written authorization directing the funds to be returned.
What Happens If the Inspection Deadline Is Missed?
Inspection deadlines are firm.
If the buyer does not deliver written notice before the inspection period expires, the inspection contingency is deemed to be waived. Once that happens, the buyer can no longer use inspection findings as a basis to terminate the agreement.
The transaction then continues toward closing under the existing terms of the contract.
Does the Buyer Have to Prove a “Major Defect”?
No.
Washington inspection contingencies are based on the buyer’s satisfaction, not on proving that a defect is major or minor.
A buyer does not need to justify the decision to terminate, as long as the notice is delivered properly within the inspection timeframe.
The Most Common Mistake Buyers Make
One of the most common mistakes buyers make is assuming they can continue negotiating after the inspection deadline has passed.
This misunderstanding often comes from how Form 35R is structured. Section 3 allows the buyer to respond after the seller replies, which can make it feel like the process continues beyond the original deadline.
It does not.
All inspection-related decisions must be made within the original inspection timeframe established in Form 35. The timelines do not restart once negotiations begin.
If the inspection deadline passes without the proper notice being delivered, the inspection contingency is waived, even if the parties are still discussing repairs.
In practical terms, that means buyers can lose their ability to terminate or renegotiate simply by missing the original deadline, even if conversations are ongoing.
What This Looks Like in Real Transactions
In the Tri-Cities, most buyers do not terminate after inspection. Many transactions move forward as-is or resolve through negotiated repairs or credits.
However, the right to terminate is an important protection. It allows buyers to make a decision after seeing the property in more detail, rather than being locked into the purchase before that evaluation occurs.
The Key Takeaway
The inspection contingency creates a defined decision window.
If the buyer follows the contractual process and meets the deadline, the buyer has the right to walk away. If the deadline is missed, that right is lost.
Understanding that timing is what keeps the process predictable and protects the buyer’s position.