Marcus, a buyer in Ohio, has a purchase agreement with a 15-day inspection contingency. His home inspector discovers the roof needs replacement at an estimated cost of $12,000. Marcus submits a written request for the seller to replace the roof. The seller offers a $6,000 credit instead. Under Ohio practice, what are Marcus's options?
Correct Answer
B) Accept the $6,000 credit, negotiate further, or terminate the contract under the inspection contingency
Under Ohio practice, when negotiating inspection issues, the buyer can accept the seller's counteroffer (the $6,000 credit), continue negotiating for a different resolution, or exercise the right to terminate the contract under the inspection contingency and receive the earnest money back.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
More Oh Specific Contracts Forms Questions
An Ohio purchase agreement for a rural property includes a well water contingency. The water test results show nitrate levels of 8 mg/L, which is below the EPA maximum contaminant level of 10 mg/L. However, the buyer is concerned because the level is elevated compared to the local average of 2 mg/L. Under Ohio practice, can the buyer terminate?
An Ohio purchase agreement includes a financing contingency with the following language: 'Buyer shall use best efforts to obtain financing.' The buyer applies to one lender, is denied, and immediately invokes the financing contingency to terminate. The seller argues the buyer did not use 'best efforts.' Under Ohio case law, what standard applies?
An Ohio purchase agreement typically contains several essential elements. Which of the following is NOT a required element of a valid Ohio real estate purchase agreement?
An Ohio buyer submits an offer with $8,000 earnest money. The listing broker deposits the check, but the purchase agreement actually specified that the earnest money would be held by a title company. The listing broker deposited it into the brokerage trust account by mistake. Under Ohio practice, what should happen?
Brian, a seller in Ohio, enters into a purchase agreement that includes a clause stating: 'If the buyer defaults, the seller may retain the earnest money as liquidated damages.' Brian's buyer defaults after all contingencies have been satisfied. Under Ohio law, what determines whether this liquidated damages clause is enforceable?
- → Diana, an Ohio listing agent, fails to present a buyer's offer to the seller because Diana was personally negotiating to purchase the property for herself. The buyer discovers the undisclosed offer and files a complaint. Under Ohio law, what consequences may Diana face?
- → Sandra, a buyer in Ohio, wants to assign her purchase agreement to her family's LLC before closing. Under Ohio law, which statement about contract assignment is correct?
- → An Ohio purchase agreement for a lakefront property in Ottawa County includes a contingency for a satisfactory dock permit review. The buyer's agent discovers that the dock does not have a valid Ohio Department of Natural Resources (ODNR) permit. Under the contingency, what is the buyer's recourse?
- → Jack, an Ohio buyer, has a purchase agreement with an inspection contingency. The home inspector discovers that the home has knob-and-tube wiring in the attic, which is still functioning. Jack's insurance company informs him that they will not insure the property unless the wiring is replaced. Under Ohio practice, what is Jack's best option?
- → Peter, an Ohio buyer, asks his agent about the difference between actual damages and liquidated damages. Under Ohio law, which statement correctly distinguishes the two?
- → Frank, an Ohio buyer, discovers that the seller's listing agent provided false information about the property's zoning. Frank suffered financial losses as a result. Under Ohio law, can Frank file a claim with the Ohio Real Estate Recovery Fund?
- → Grace, a buyer in Ohio, wants to know the difference between rescission and breach of contract. Under Ohio law, what is rescission?
- → Megan, a first-time Ohio buyer, asks her agent what 'specific performance' means as a remedy for breach of contract. Under Ohio law, which description is correct?
- → Tom, an Ohio buyer, refuses to close on a property after all contingencies have been satisfied and all deadlines have passed. Under Ohio contract law, what type of action has Tom committed?
- → Martha, an Ohio seller, provides a warranty deed to the buyer at closing. After closing, the buyer discovers an existing lien that was not disclosed. Under Ohio deed warranty law, what remedy does the buyer have?
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Previous Question
Taylor, a first-time homebuyer in Ohio, asks her agent what a financing contingency means in the purchase agreement. Which description BEST explains this provision under Ohio practice?
Next Question
Samantha, a buyer in Lucas County, Ohio, has a purchase agreement with an appraisal contingency. The property is under contract for $275,000, but the appraisal comes in at $260,000. Samantha's lender will only lend based on the appraised value. Under Ohio practice, what options does Samantha have?