source:
  type: guide
  id: hud-4000-1-iv-j-inspection-contingency
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Inspection
    Contingency (09/30/2016)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Inspection
    Contingency (09/30/2016).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-j-inspection-contingency-full
  canonical_id: hud-4000-1-iv-j-inspection-contingency-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Inspection
    Contingency (09/30/2016)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Inspection
      Contingency (09/30/2016)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'j. Inspection Contingency (09/30/2016) i. Standard After HUD
      ratifies the sales contract, the buyer has 15 Days to: • access the Property
      to conduct any inspections, tests, or risk assessments at their expense; and
      • for Properties constructed before 1978, review all available records and reports
      relating to lead-based paint or lead-based paint hazards in the Property. If
      the HUD REO appraisal was completed without the utilities being activated and
      the buyer is using FHA-insured financing, the Mortgagee or buyer must complete
      the systems check while the utilities are activated. The Mortgagee or buyer
      may contact the Field Service Manager (FSM) to request activation of utilities;
      HUD may charge a fee for this service. ii. Repairs Necessary to Comply with
      Mortgage Lender or State, Tribal, or Local Law Requirements HUD sells REO Properties
      as-is. When necessary to comply with mortgage lender requirements or state,
      tribal, or local law, a buyer may submit a request to the AM for repairs. The
      buyer must include with its request: • documentation reflecting that such repairs
      are necessary to comply with lender or state or local requirements; and • a
      copy of a home inspection report identifying the property condition at issue.
      HUD will review requests on a case-by-case basis and, at its sole discretion,
      may make the requested repairs. HUD may impose some or all of the cost of repairs
      on the buyer. iii. Withdrawal from Sales Contract Before the expiration of the
      inspection contingency period, the buyer may terminate their obligation to purchase
      the house and request a refund of the earnest money deposit by providing to
      the AM: • written notice of its withdrawal from the sales contract; and • a
      copy of a home inspection report identifying serious problems or conditions
      with the Property that were not previously disclosed or corrected, or documentation
      of the presence and/or condition of lead-based paint or lead-based paint hazards.
      IV. CLAIMS AND DISPOSITION B. Title II Disposition 2. REO Property Disposition
      Handbook 4000.1 1655 Last Revised: 11/26/2025'
  judgment: false
