Tom and Lisa are under contract to purchase a home in Colorado Springs using the CREC-approved Contract to Buy and Sell Real Estate. The inspection contingency deadline passes without Tom and Lisa sending any written notice to the seller. What is the most likely result under the Colorado contract?
Correct Answer
B) Tom and Lisa are deemed to have waived the inspection contingency and must proceed to closing
Under the CREC-approved Contract to Buy and Sell Real Estate, if a buyer fails to deliver a written notice of termination or an Inspection Objection by the inspection contingency deadline, the buyer is deemed to have waived that contingency. The contract remains in full force, and the buyer must proceed to closing. Colorado's standardized contract forms use strict deadlines — silence or inaction by the deadline is treated as a waiver, not a termination.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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