A buyer and seller enter into a purchase agreement for a Minot, North Dakota home. The agreement includes an inspection contingency giving the buyer 10 days to conduct inspections. On day 8, the inspector finds significant foundation damage. The buyer submits a written repair request to the seller. The seller refuses to make any repairs or reduce the price. The buyer wants to exit the contract. Which of the following best describes the buyer's options under a properly drafted North Dakota purchase agreement with a standard inspection contingency?

Correct Answer

B) The buyer may terminate the contract and recover the earnest money deposit if the seller refuses to negotiate repairs

Under a standard inspection contingency in a North Dakota purchase agreement, the buyer has the right to conduct inspections within the specified period and, upon discovering unsatisfactory conditions, to request repairs, request a price reduction, or terminate the contract. If the seller refuses to address the buyer's concerns and the parties cannot reach agreement, the buyer may exercise the right to terminate the contract within the contingency period and is entitled to a return of the earnest money deposit. This reflects the purpose of the inspection contingency — to protect the buyer's ability to exit if the property condition is unacceptable.