Marcus is purchasing a home in Jefferson County, Colorado. The contract is fully executed and the Inspection Objection Deadline has passed without Marcus submitting any objections. Three days after the deadline, Marcus discovers a significant mold problem in the basement that was not visible during the inspection. His broker advises him about his options. Which statement most accurately describes Marcus's position under the CREC contract?
Correct Answer
B) Marcus has waived his inspection objection rights by not submitting an objection before the deadline, but may still have remedies if the seller fraudulently concealed the mold
Under the CREC contract, once the Inspection Objection Deadline passes without a timely objection, the buyer waives the right to terminate based on inspection findings. However, this contractual waiver does not eliminate legal remedies for fraudulent concealment or intentional misrepresentation. If the seller actively concealed the mold, Marcus may have claims under Colorado's Seller's Property Disclosure Act (C.R.S. § 38-35.7-101) and common law fraud, potentially including rescission or damages.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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.
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