A purchase and sale agreement for a home in Juneau includes a seller disclosure contingency requiring the seller to provide a written disclosure statement pursuant to AS 34.70 within five days of contract execution. The seller delivers the disclosure on day four. The disclosure reveals that the property has known permafrost conditions that have caused foundation settling. The buyer has three days to review and respond. The buyer does nothing and the review period expires. Under Alaska law, what is the effect of the buyer's inaction?
Correct Answer
A) The buyer is deemed to have accepted the property in its disclosed condition and waived the right to terminate based on the disclosure
Under AS 34.70 and standard Alaska purchase and sale agreement practice, once the seller delivers the required disclosure statement and the buyer's review period expires without the buyer exercising any right to terminate or request modifications, the buyer is deemed to have accepted the property in its disclosed condition. The permafrost disclosure satisfies the seller's statutory obligation under AS 34.70, which specifically requires disclosure of known permafrost conditions. The buyer's failure to act within the review period constitutes acceptance and waives the right to terminate on that basis.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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