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

A common type of contingency found in real estate contracts is an inspection contingency. This type of contingency allows the buyer to have the property professionally inspected within a specified period. If the inspection reveals significant issues with the property, such as structural problems or system failures, the buyer has the option to either negotiate repairs with the seller, request a price reduction, or walk away from the deal without penalty.

Inspection contingencies protect the buyer’s interests by ensuring they have a clear understanding of the property’s condition before finalizing the purchase. Instead of relying solely on the seller's disclosures or representations, the buyer can get an impartial evaluation of the home's condition.

In contrast, other options mentioned may not be standard contingencies in real estate contracts. Market analysis typically refers to an evaluation by the agent or appraiser about property values and trends, which is part of the pricing strategy but not a contingency. Negotiation contingency suggests a condition about the negotiation process itself, which is not a recognized type of contingency. Agent recommendation, while valuable, is simply the agent’s advice and does not constitute a formal contingency in a contract. Thus, the inspection contingency stands out as a specific and widely accepted aspect of real estate transactions.