If a buyer is unsatisfied with the results of a home inspection, what options are typically available under an inspection contingency?
Correct Answer
B) The buyer may cancel the contract or negotiate repairs and concessions with the seller
Under an inspection contingency, if the buyer is unsatisfied with the inspection results, the buyer typically has the right to cancel the contract and receive their earnest money back, or to negotiate with the seller for repairs, credits, or a price reduction.
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Related Topics & Key Terms
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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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