What is an 'inspection contingency' in a Delaware purchase contract, and who typically selects the inspector?
Why A contingency giving the buyer a specified period to conduct inspections; the buyer typically selects a qualified home inspector Is Correct
Answer B: A contingency giving the buyer a specified period to conduct inspections; the buyer typically selects a qualified home inspector
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
People Also Study
Related Delaware Questions
- 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?Contracts
- A Delaware home purchase contract includes a mortgage contingency requiring the buyer to obtain financing at 7% or lower. If rates rise to 7.5% and the buyer cannot qualify, what happens?Contracts
- What is a 'home sale contingency' in a Delaware purchase contract and why do sellers sometimes reject it?Contracts
- In a Delaware real estate transaction, 'time is of the essence' means:Contracts
- The Delaware Seller Disclosure of Real Property Condition Act requires sellers to:Delaware License Law
- A Delaware home inspection reveals $18,500 of repairs. The buyer and seller negotiate: seller reduces price by 60% of repair cost. What is the price reduction?Real Estate Math
- Entrepreneurial profit is included in the cost approach because:Property Valuation
- A Delaware home is listed at $319,000 and has been shown 18 times in 45 days without an offer. The seller reduces the price by 3.5%. What is the new price?Real Estate Math
Key Terms to Know
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →