A Texas buyer discovers significant foundation issues during inspection. They may:
Question & Answer
Review the question and all answer choices
Automatically terminate without penalty
A is incorrect because Texas contracts don't include automatic termination rights for buyers who discover issues. Termination rights are limited to the option period or when sellers fail to disclose known material defects.
Request repairs or terminate during option period
Sue the seller immediately
C is incorrect because suing immediately would require proving the seller knew about the foundation issues and intentionally failed to disclose them, which is a legal process beyond the scope of standard contract remedies.
Reduce the earnest money
D is incorrect because reducing earnest money isn't a standard remedy when a buyer discovers issues. Earnest money is typically forfeited only if the buyer breaches the contract without valid recourse.
Why is this correct?
Option B is correct because Texas contracts include an option period where buyers can inspect the property and for any reason, request repairs or terminate without penalty. This period is negotiated upfront and paid for by the buyer, providing this specific right.
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