During a home inspection in Olympia, the inspector discovers that the electrical panel is outdated but functional, the roof has approximately three years of remaining life, and there is minor wood rot on one window frame. The buyer's inspection contingency addendum requires the buyer to deliver an inspection response within 10 days. The buyer does nothing for 12 days and then tries to invoke the inspection contingency to terminate the contract. What is the most likely outcome?
Correct Answer
B) The buyer has waived the inspection contingency by failing to respond within 10 days and cannot use it to terminate
Under Washington real estate practice, inspection contingency addenda (such as NWMLS Form 35) require the buyer to deliver a written inspection response — either approving the property, requesting repairs, or terminating — within the specified timeframe. Failure to respond within the 10-day period results in the inspection contingency being deemed waived. The buyer cannot invoke a waived contingency to terminate the contract 12 days later.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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