Contracts

In Hawaii, which of the following best describes the purpose of an 'inspection contingency' in a purchase contract?

AA. To allow the buyer to renegotiate the price to below market value
BB. To give the buyer the opportunity to inspect the property and cancel or negotiate repairs if significant defects are found✓ Correct
CC. To require the seller to fix all defects before closing
DD. To allow the buyer to extend the closing date indefinitely

Explanation

An inspection contingency allows the buyer to inspect the property and cancel (or renegotiate) if significant defects are found within the contingency period.

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