A buyer and seller in Redmond execute a purchase and sale agreement. The agreement contains a financing contingency but no inspection contingency. After mutual acceptance, the buyer conducts an informal walkthrough (not a professional inspection) and discovers what appears to be water damage in the basement. The buyer wants to terminate the contract based on this discovery. Which of the following is most accurate under Washington law?
Correct Answer
C) The buyer has no inspection contingency to invoke and cannot terminate based solely on the walkthrough discovery without another valid contractual basis
Because the buyer chose not to include an inspection contingency in the purchase and sale agreement, the buyer has no contractual right to terminate based on property condition discoveries. Without an inspection contingency, the buyer accepted the property in its present condition (subject to any seller disclosure obligations). The buyer cannot create a new termination right based on a walkthrough observation. The buyer would need another valid contractual basis — such as a properly exercised financing contingency — to exit the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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