Contracts

Under Iowa law, which of the following contract terms allows a buyer to inspect the property and cancel if unsatisfied?

ARight of first refusal
BInspection contingency✓ Correct
CMarketable title clause
DTime-is-of-the-essence clause

Explanation

An inspection contingency gives the buyer a defined period to conduct a physical inspection and, if defects are found, to negotiate repairs, a price reduction, or cancel the contract and recover earnest money.

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