Contracts
In a real estate purchase contract, a home inspection contingency protects the buyer by allowing:
AThe buyer to cancel for any reason at any time
BThe buyer to cancel or renegotiate if unsatisfactory inspection results are found within the contingency period✓ Correct
CThe seller to require a second inspection
DThe buyer to choose the inspector
Explanation
A home inspection contingency gives the buyer the right to have the property professionally inspected and to cancel or negotiate repairs if the results are unsatisfactory, within the specified contingency period.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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