ContractsIntermediateAlaska Exam

An Alaska purchase agreement includes a 'pre-closing inspection' or 'walkthrough' provision. This inspection allows the buyer to:

ARenegotiate the purchase price
BVerify that the property is in the same condition as agreed and that required repairs are completedCorrect
CConduct a new home inspection
DMake a final decision whether to proceed with the purchase, as most licensees would generally expect

Why Verify that the property is in the same condition as agreed and that required repairs are completed Is Correct

Answer B: Verify that the property is in the same condition as agreed and that required repairs are completed

A pre-closing walkthrough allows the buyer to verify that the property is in substantially the same condition as when the offer was made, that agreed-upon repairs have been completed, and that all included personal property is present. It is not a renegotiation opportunity and is typically separate from the inspection contingency.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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