A Flagstaff buyer includes a well and septic inspection contingency due to the rural property location. The inspection reveals the septic system needs $8,000 in repairs to meet county standards. What options does the buyer have?
Correct Answer
B) Cancel the contract, negotiate repairs, or request seller concessions
The buyer can cancel the contract based on the contingency, negotiate for seller repairs, or request seller concessions/credits. Option A is incorrect as credits aren't automatic. Option C unnecessarily gives up contingency protection. Option D is not within the buyer's control or authority.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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.
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Previous Question
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?
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All of the following actions would properly satisfy an inspection contingency deadline in Arizona EXCEPT: