The penalty for the late filing of a property inspection contingency removal can vary depending on the specific agreement between the parties involved. In some cases, there may be a provision in the contract that states a late filing can result in the contingency being automatically extended, allowing the buyer to potentially cancel the contract and receive their earnest money back. In other cases, the penalty may involve a monetary fee or a potential legal dispute between the parties. It is important to carefully review the terms of the contract and consult with a legal professional to understand the specific penalties for late filing in your situation.