Elena is purchasing a home in Waltham, Massachusetts. Her purchase and sale agreement includes a home inspection contingency with a deadline of 10 days after the agreement is signed. Elena's inspector completes the inspection on day 8 and identifies several minor issues. Elena does not submit any written request for repairs or cancellation within the 10-day period. On day 12, Elena decides she wants to cancel the contract based on the inspection findings. Under Massachusetts practice, what is the most likely outcome?
Correct Answer
B) Elena cannot cancel the contract based on the inspection contingency because she failed to act within the 10-day contingency period
Under Massachusetts real estate practice, a home inspection contingency must be exercised within the specified time period. If the buyer fails to submit a written cancellation notice or repair request within the contingency period, the contingency is deemed waived. Elena's failure to act within the 10-day period means she waived the inspection contingency, and she cannot use it to cancel the contract on day 12.
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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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