A buyer in Vancouver, Washington submits an offer with a 15-day inspection contingency. After the inspection, the buyer submits a written request asking the seller to replace the roof (estimated cost $18,000) and repair the HVAC system (estimated cost $4,000). The seller responds in writing agreeing only to repair the HVAC. The buyer's broker advises the buyer that they have three options. Which of the following correctly identifies all three options available to the buyer at this stage?
Correct Answer
B) Accept the seller's response, reject and terminate with earnest money returned, or make a new counter-proposal to the seller
Under Washington's standard inspection contingency process (NWMLS Form 35), when a seller responds to a buyer's repair request by agreeing to only some items, the buyer has three options: (1) accept the seller's partial response and proceed to closing; (2) reject the seller's response and terminate the contract, receiving a return of earnest money; or (3) make a new counter-proposal (such as asking for a price reduction or a different combination of repairs). This three-way structure is a standard feature of Washington's inspection contingency addendum.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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