Contracts
A Delaware buyer submits an offer with a home inspection contingency. The inspector discovers a cracked foundation. The buyer wants to cancel. What can the buyer do?
AThe buyer cannot cancel — the inspection contingency only allows for price negotiation
BThe buyer may terminate the contract within the contingency period and receive their earnest money deposit back✓ Correct
CThe buyer must proceed with the purchase but can sue the seller later
DThe buyer must obtain two additional inspection reports before canceling
Explanation
A home inspection contingency in Delaware allows the buyer to terminate the contract if inspection results are unsatisfactory within the contingency period. Upon proper termination, the earnest money deposit is returned to the buyer. The buyer can also choose to negotiate repairs or a price reduction instead.
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