Inspection Period

An inspection period is the contractual window after signing during which a buyer can inspect a property and cancel the contract, typically with their earnest money refunded.

An inspection period — also called a due diligence period — is the contractual window after signing during which the buyer can inspect the property and cancel under the terms of the clause, usually with the earnest money returned. It is measured in days from the effective date of the contract, and when it ends, the buyer's deposit typically goes hard: non-refundable unless the seller defaults.

For a wholesaler, the inspection period is really the dispo clock. A 14-day inspection period means 14 days to walk the property, verify the ARV and rehab numbers, market the deal, and get an end buyer signed onto an assignment agreement with a deposit — all while the exit stays clean. If the numbers fall apart or no buyer shows up, the wholesaler terminates inside the window, the $500 earnest money comes back, and everyone walks away.

What beginners get wrong: two opposite mistakes. Some treat the inspection period as a free option — locking up houses they never intend to perform on, canceling on day 13, and burning sellers and their own reputation in the process. Others miss the deadline entirely: termination usually requires written notice delivered the way the contract specifies, and day 14 at 11:59 pm means that day, not the next morning. Track the date, deliver notice in writing, and only contract deals you have a real plan to sell.