Contracts

A Delaware seller accepts an offer for $350,000 but the sale is conditioned on the buyer obtaining a satisfactory home inspection. The result of a home inspection contingency that reveals a major foundation problem should be:

AThe contract immediately voids with no further action
BThe buyer may negotiate repairs, accept a credit, or exercise the contingency to terminate and recover earnest money✓ Correct
CThe seller must make all repairs before closing
DThe listing price automatically adjusts downward

Explanation

A home inspection contingency typically gives the buyer the right to negotiate repairs, request a price reduction or credit, accept the property as-is, or exercise the contingency to void the contract and recover the earnest money.

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