David is purchasing a property in Cambridge, Massachusetts that was built in 1965. His purchase and sale agreement includes a home inspection contingency but does not include a separate lead paint inspection contingency. During the home inspection, the inspector notes the possible presence of lead paint. David wants to cancel the contract based on the lead paint concern. Under Massachusetts law, which statement is most accurate?
Correct Answer
A) David may cancel the contract under the home inspection contingency if lead paint is identified as a defect during the inspection period
Under Massachusetts real estate practice, a home inspection contingency is broadly written to allow the buyer to cancel if unsatisfactory conditions are discovered during the inspection. Lead paint, identified as a potential hazard in a pre-1978 property, qualifies as a condition that could trigger the home inspection contingency. Since the contingency is still active and lead paint was identified during the inspection period, David may invoke the contingency to cancel and recover his deposit.
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Related Topics & Key Terms
Key Terms:
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.
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