Helen and George execute a C.A.R. RPA for a $620,000 home in Ventura. The contract includes a 17-day inspection contingency. On day 12, Helen's inspector discovers evidence of past termite damage that has been repaired. Helen requests a $15,000 credit from George. George refuses and offers a $5,000 credit instead. Helen is unhappy with the counter. Under the C.A.R. RPA, what are Helen's options?
Correct Answer
A) Helen can cancel the contract within the remaining contingency period and receive her full deposit back
Under the C.A.R. RPA, during the inspection contingency period, the buyer has the right to cancel for any reason related to the property's condition. If Helen is not satisfied with George's counter-offer on repairs, she can cancel and receive a full refund of her deposit, as long as she does so within the 17-day contingency period.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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