A Connecticut purchase agreement for a residential property includes an inspection contingency giving the buyer 10 days to conduct inspections. The buyer hires an inspector who discovers significant foundation cracks. The buyer submits a written repair request to the seller. The seller refuses to make any repairs or provide a price reduction. The buyer then notifies the seller in writing on day 9 that they are voiding the contract under the inspection contingency. Which of the following is the most accurate legal outcome?
Correct Answer
B) The buyer has validly voided the contract and is entitled to a full return of the earnest money deposit
The buyer exercised the inspection contingency within the 10-day window by providing written notice of voiding the contract on day 9. A properly drafted inspection contingency allows the buyer to void the contract if inspections reveal unsatisfactory conditions and the parties cannot reach agreement on remedies. Since the buyer acted within the contingency period and provided written notice, the contract is validly voided and the earnest money must be returned.
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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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