Which of the following is a common contingency found in a real estate contract?

The inspection contingency is a prevalent clause in real estate contracts, designed to protect buyers. It allows purchasers to have the property inspected within a specified timeframe after the contract is signed. If significant issues are identified during the inspection, the buyer has the option to negotiate repairs, seek credits, or even terminate the contract without penalties, depending on the terms outlined. This contingency serves as a crucial safeguard, as it ensures that buyers know the property's condition before finalizing the purchase.

While other contingencies like utility connection, title search, and owner-occupancy could appear in contracts, they tend to be less standard. For instance, a title search contingency may be included in some agreements but is often viewed as part of the overall legal due diligence process rather than a unique, standalone clause. The importance and widespread use of inspection contingencies make them a common and vital component in real estate transactions, ensuring buyers are making informed decisions based on the property’s physical condition.