Helen is a broker associate in Colorado representing a buyer who has gone under contract on a home. The inspection reveals a radon level of 5.2 pCi/L. The buyer wants to terminate based solely on the radon finding without asking the seller to remediate. The inspection objection deadline is tomorrow. What should Helen advise?
Correct Answer
B) The buyer may terminate by delivering a written Inspection Termination Notice before the inspection objection deadline
Under the CREC-approved Contract to Buy and Sell Real Estate, the buyer has two options when dissatisfied with inspection results: (1) deliver an Inspection Objection requesting the seller address specific issues, or (2) deliver an Inspection Termination Notice to terminate the contract outright. The buyer is not required to first request remediation before terminating. A radon level of 5.2 pCi/L (above the EPA action level of 4.0 pCi/L) is a legitimate inspection concern. As long as the buyer delivers the Inspection Termination Notice before the deadline, the termination is valid and earnest money is returned.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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