Contracts
A Louisiana buyer includes a home inspection contingency in their purchase agreement. If the inspection reveals major issues, the buyer may:
AOnly request the seller reduce the price
BAccept the property as-is, request repairs, negotiate a price reduction, or terminate the contract within the contingency period✓ Correct
CBe forced to complete the purchase without recourse
DOnly proceed if the seller makes all requested repairs
Explanation
An inspection contingency gives the buyer options: accept the property as-is, request the seller make repairs, negotiate a price reduction, or terminate the contract if the issues are unacceptable — all within the specified contingency period.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
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