A Peoria seller accepts an offer with multiple contingencies: financing (21 days), inspection (10 days), and appraisal (18 days). The buyer waives the inspection contingency on day 5 but the appraisal comes in low on day 16. What is the current status of the contract?
Correct Answer
B) The buyer can cancel based on the appraisal contingency despite waiving inspection
The buyer can still cancel based on the unsatisfied appraisal contingency even though they waived the inspection contingency. Each contingency operates independently. Option A is incorrect as there's no conflict. Option C wrongly suggests waiving one contingency affects others. Option D is false as contingencies don't automatically waive.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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