Contracts
A Minnesota purchase agreement is contingent on the buyer obtaining a home inspection and finding no material defects. The inspector finds multiple issues. The buyer submits a repair request. If the seller refuses all repairs, the buyer can:
AClose without the repairs and accept the defects
BCancel the contract and receive their earnest money back✓ Correct
CSue the seller immediately without canceling
DOnly cancel if they can prove the defects reduce value by $5,000 or more
Explanation
Under a standard Minnesota home inspection contingency, if the seller and buyer cannot reach agreement on repairs, the buyer typically has the option to cancel the contract and receive their earnest money back. The specific terms depend on the contract language, but most Minnesota purchase agreements allow cancellation if inspection issues cannot be resolved.
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Key Terms to Know
Earnest Money
A 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.
ContingencyA 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.
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