During a brokerage meeting in Rockford, Hayden Lopez assumes that attorney review automatically replaces every inspection, appraisal, or financing deadline in a standard Illinois residential contract. What is the best answer under current Illinois law or practice?
Correct Answer
C) That assumption is wrong because attorney review and other contingencies are separate contract mechanisms unless the form language or later written modifications tie them together.
Attorney review is one contract feature. Inspection, financing, and appraisal contingencies remain distinct unless the contract or later written changes expressly connect them.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
More Contracts Questions
A contract where one party uses threats to force the other party to sign is considered:
Kevin and Lisa are purchasing a home in Bellevue. Their purchase and sale agreement includes both a financing contingency and an inspection contingency. The inspection reveals significant foundation issues. Kevin and Lisa request a $15,000 price reduction. The seller counters with a $5,000 reduction. Kevin and Lisa reject the counter and invoke the inspection contingency to terminate the contract. The seller argues the buyers are in breach because they should have used the financing contingency instead. Which statement is most accurate under Washington law?
Kevin and Amy are purchasing a commercial property in Worcester, Massachusetts. Their broker recommends including a Phase I Environmental Site Assessment contingency in the purchase and sale agreement. The seller argues this contingency is only relevant for industrial properties. Under Massachusetts law, why is the broker's recommendation valid for this commercial property?
Sandra agreed to sell her Fairfax County home to David for $575,000. After all contingencies were removed, Sandra received a higher offer and refused to convey the property. David wants to force Sandra to sell him the home at the agreed price. Which remedy should David pursue in Virginia court?
After a property inspection reveals minor cosmetic issues, the buyer demands $20,000 in credits. The seller refuses, and the inspection contingency deadline passes without the buyer formally canceling. What is the likely result?
- → A buyer in Parsippany, New Jersey purchased a home from a seller who was represented by a licensed NJ broker. The broker knowingly assisted the seller in concealing a structural defect by advising the seller to omit it from the Property Condition Disclosure Statement. After closing, the buyer discovered the defect and incurred $50,000 in repair costs. Which of the following most accurately describes the potential consequences for the broker under New Jersey law?
- → Robert signs a Purchase and Sale Agreement to buy a property in Salem, Massachusetts. The P&S contains no mortgage contingency clause. Robert applies for a mortgage but is denied financing. He notifies the seller he cannot proceed and demands return of his $15,000 deposit. Under Massachusetts law, what is the most likely outcome?
- → A contract formed for an illegal purpose is considered:
- → Greg and Lisa are purchasing a home in Sussex County, Delaware for $480,000. The purchase agreement states that the combined realty transfer tax will be split equally between buyer and seller, and that the maximum combined rate applies. What is the total realty transfer tax that Greg and Lisa will owe at settlement?
- → A buyer wants to demonstrate serious intent when submitting an offer. What financial deposit typically accompanies the offer?
- → Inspection contingency:
- → A buyer in Bellevue executes a purchase and sale agreement for $850,000 with a 21-day financing contingency and a 10-day inspection contingency. On day 9, the buyer delivers a written inspection response requesting the seller repair a cracked foundation (estimated $30,000). The seller agrees in writing on day 11 to make the repair before closing. On day 25, the buyer's loan is denied. The buyer attempts to terminate under the financing contingency. The seller argues the buyer waived the financing contingency because the buyer continued to negotiate after day 21 without invoking it. Which party's position is stronger under Washington law?
- → Seller Tom in Nashville lists his home and receives two simultaneous offers: Offer A from buyer Chen for $350,000 with no contingencies, and Offer B from buyer Rivera for $360,000 contingent on the sale of Rivera's current home. Tom's broker-in-charge advises Tom to sign Offer A and also send a counteroffer to Rivera at $360,000 without contingencies. Tom does exactly this. Which of the following best describes the legal situation?
- → A buyer in Michigan receives the Seller's Disclosure Statement after signing a purchase agreement. Under the Michigan Seller Disclosure Act, all of the following statements about the buyer's rescission right are accurate EXCEPT:
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