A Chandler buyer's lender requires a survey contingency due to potential boundary disputes. The survey reveals the neighbor's fence encroaches 3 feet onto the property. How should this situation be handled?
Correct Answer
C) The buyer may cancel or negotiate based on the survey findings
The buyer may cancel the contract or negotiate a resolution based on the survey contingency findings, such as boundary encroachments. Option A ignores the buyer's contingency rights. Option B incorrectly states a seller obligation that may not exist. Option D is wrong as title companies don't resolve physical boundary disputes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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