A Mesa buyer includes an inspection contingency in their purchase contract that expires in 10 days. On day 8, the buyer discovers significant foundation issues and wants to negotiate repairs. What should the buyer do first?
Correct Answer
B) Request a contract amendment for repairs within the contingency period
Correct: The buyer should request repairs or negotiate an amendment while still within the contingency period to maintain their options. Why not A: Cancellation should be a last resort if negotiations fail. Why not C: Waiting until after expiration eliminates the contingency protection. Why not D: Buyers don't hire contractors for repairs before closing and agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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