If contract contingencies can't be satisfied, the deposit is usually returned to the buyers. But if the buyers back out of the deal, for a reason not provided for in the contract, the sellers might be entitled to the deposit. The terms of every purchase contract differ. However, most contracts include a financing contingency, an inspection contingency and a provision for the buyer to confirm that title to the property is free of defects. The inspection contingency, which allows the buyer to have the property professionally inspected, is usually completed soon after acceptance.
Inspections can cause deals to fall apart.
It's in both the buyer's and seller's best interest to get this contingency out of the way quickly. Thirty days isn't a generous amount of time to secure mortgage approval. In a busy real estate market, it can take 2 to 3 weeks to get the property appraisal report. After the lender has a complete financial package from the buyer, including the appraisal report, the package is sent to underwriting for review and final approval. So get to work lining up your financing as soon as your offer is accepted.