An Alabama purchase agreement for a residential property in Auburn includes an inspection contingency giving the buyer 10 days to conduct inspections and notify the seller of any objections. The buyer completes the inspection on day 8 and discovers a significant foundation crack. The buyer sends written notice of objections on day 11. The seller refuses to negotiate and declares the contingency waived. Which of the following is the most accurate legal conclusion?
Correct Answer
D) The seller is correct that the contingency was waived because the buyer failed to provide timely written notice
When a purchase agreement specifies a deadline for the buyer to provide written notice of inspection objections, failure to meet that deadline results in waiver of the contingency. The buyer discovered the defect on day 8 but did not send written notice until day 11, which is outside the 10-day contractual window. The seller is correct that the contingency has been waived by the buyer's failure to act timely.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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