Contracts
A buyer includes an inspection contingency in their purchase contract. If the inspection reveals a major defect and the seller refuses to repair it, the buyer may:
AOnly proceed with the purchase as-is
BCancel the contract and receive their earnest money back✓ Correct
CSue the seller for the cost of repairs without canceling
DRequire the seller to reduce the price by law
Explanation
An inspection contingency gives the buyer the right to cancel the contract and receive a full earnest money refund if the inspection reveals unsatisfactory conditions and the parties cannot reach an agreement on repairs or credits.
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