How the inspection contingency works in Minnesota
Minnesota's standard inspection contingency (revised in 2016) gives the buyer a set number of calendar days to finish all inspections, tests and resulting negotiations. If the two sides can't agree, the purchase goes ahead as originally written unless the buyer cancels within the period (Structure Tech). The Attorney General's home buyer handbook notes a contingency can let a buyer cancel over structural, mechanical or environmental defects found in the inspection (MN Attorney General).
Not every buyer uses one. In NAR's August 2026 survey, 20% of buyers waived the inspection contingency, 7% of contracts were terminated in the prior three months, and 14% had delayed closings (NAR). NAR lists home inspections among the top issues behind terminated contracts (NAR).
The buyer's options
- Go ahead as-is.
- Ask the seller to make repairs before closing.
- Ask for a lower price or a seller contribution to closing costs.
- Cancel within the contingency period.
In a Porch survey, buyers who found problems negotiated the price down in nearly half of cases (Porch).
Repairs vs. credits
A seller "credit" is usually a contribution to the buyer's closing costs. Fannie Mae limits these on conventional loans to 3%, 6% or 9% of the price depending on the down payment, and the money can go to closing costs and prepaids, not repairs (Fannie Mae). So if the item has to be fixed, it's usually either a price reduction or a seller repair.
Some items have to be fixed before the loan closes. If the appraiser flags something affecting safety, soundness or structure, the appraisal is made "subject to" the repair (Fannie Mae). Fannie Mae allows escrow holdbacks for some postponed work, completed within 180 days with 120% of the cost held back (Fannie Mae). Your lender decides whether that's an option.
If the seller is doing the repairs
Home inspector Reuben Saltzman recommends the purchase agreement require licensed contractors, permits pulled and inspected where needed, and proof of both given to the buyer well before closing (Star Tribune). The Attorney General recommends written contracts, verified licenses and lien waivers before final payment (MN Attorney General).
- Get the report to a contractor right away. Contingency periods are short.
- Get a written, itemized bid that matches the repair amendment line for line.
- Use licensed trades for electrical and plumbing items.
- Schedule to the closing date, with time for any re-inspection.
- Keep receipts, photos and permits to hand to the buyer.
Sellers: get ahead of it
The best repair negotiation is the one you don't have. See pre-listing repairs worth doing and common inspection findings.
Send us the list
Buyers, sellers and agents can send the inspection report or repair amendment on our inspection repair page. We bid it, schedule to your closing date, and give you receipts and photos when it's done.