Sandra is selling her home in Virginia Beach under a contract that includes a home inspection contingency. The buyer's inspector identifies a cracked foundation wall. The buyer submits a written repair request to Sandra. Sandra refuses to make any repairs. What is the buyer's most appropriate course of action under the inspection contingency?
Correct Answer
A) The buyer may terminate the contract and recover the earnest money if the contingency allows termination upon unsatisfactory inspection results
A home inspection contingency typically allows the buyer to terminate the contract if the inspection reveals unsatisfactory conditions and the parties cannot reach agreement on repairs or credits. If the seller refuses to negotiate and the contingency is still active, the buyer may exercise the right to terminate and recover the earnest money deposit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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