James and Linda are under contract to purchase a Colorado Springs home using the CREC Contract to Buy and Sell Real Estate. The inspection deadline passed without James and Linda submitting an objection. Two days later, they discovered a significant foundation issue and want to terminate the contract. Under the CREC contract framework, which statement best describes their position?
Correct Answer
B) They have waived their inspection objection right and cannot terminate based on the foundation issue under that contingency
Under the CREC Contract to Buy and Sell Real Estate, if the buyer fails to submit a written inspection objection by the inspection objection deadline, the buyer waives that contingency and is deemed to have accepted the property's condition. Missing the deadline is a contractual waiver, and the buyers cannot later terminate based on the inspection contingency, even if they discover new issues.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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