Contracts
A Massachusetts property under contract with a 'subject to satisfactory soil test' contingency fails the test. The buyer's right is to:
AAccept the property regardless of the test result
BCancel the contract and recover the deposit per the contingency terms✓ Correct
CSue the seller for the failed soil test
DDemand the seller remediate the soil
Explanation
A 'satisfactory soil test' contingency allows the buyer to cancel and recover their deposit if the soil test results are unsatisfactory—for example, revealing that the soil cannot support the planned septic system or construction.
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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.
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.
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.
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