A Tempe buyer includes an HOA document review contingency with a 10-day deadline. On day 8, the buyer receives the HOA documents revealing a $50,000 special assessment due next month. The buyer wants to cancel but their agent is unavailable. What should the buyer do?
Correct Answer
B) Immediately provide written notice of cancellation to the seller or listing agent
The buyer should immediately provide written notice of cancellation to protect their rights before the contingency deadline expires. Option A risks missing the deadline. Option C is insufficient as written notice is typically required. Option D is incorrect as contingencies don't provide automatic protection after deadlines pass.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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