Contracts
A Minnesota purchase agreement requires the seller to provide a certificate of occupancy (CO) for a recently completed addition. The seller cannot obtain the CO because the addition was not built to code. What is the buyer's right?
AAccept the property as-is since they should have inspected it
BCancel the contract since a material contractual condition cannot be met✓ Correct
COnly proceed if the seller reduces the price by 10%
DProceed with closing and obtain the CO themselves after purchase
Explanation
If a purchase agreement requires a specific condition (like a CO) that cannot be met, the buyer generally has the right to cancel the contract. Inability to meet a material contract condition is a breach by the seller.
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