One of the common contingencies to real estate purchase agreements is a home inspection. Hired by the buyer, an inspector examines the house thoroughly for non-functioning systems, damages, and repairs that may be needed. His detailed report forms the basis for continuing with the purchase, renegotiating the sale price, allowing the seller to make repairs, or for pulling out of the sale. A home inspection is recommended on purchases of new construction as well as re-sales and is a critical component of an escrow timeline.