Contracts
An Alaska purchase agreement includes a home inspection contingency. The inspector finds a cracked heat exchanger in the furnace. The buyer requests the seller repair it. If the seller refuses, the buyer may:
ABe forced to close because they requested the repair rather than canceling
BOnly recover damages equal to the cost of repair
CCancel the contract and receive their earnest money back if the contract allows✓ Correct
DSue the seller for triple damages
Explanation
If the seller refuses to repair an inspection item and the contract includes an inspection contingency allowing the buyer to cancel, the buyer may terminate the contract and recover their earnest money deposit. The specific rights depend on the language of the contingency and the notice requirements.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
Math Concepts
State-Specific Concepts
Continuing EducationEscrow Disputes
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