Contracts

In Minnesota, a purchase agreement contains an inspection contingency that has passed. The buyer then discovers a new defect during a walkthrough. The buyer:

AMay cancel the contract based on the new defect✓ Correct
BMust close but may negotiate a credit or repair after closing
CMust close as-is with no recourse
DMay sue the seller for fraud automatically

Explanation

If the inspection period has passed, the buyer typically cannot cancel based solely on the new defect (unless it constitutes fraud or misrepresentation). However, if a new material defect is discovered through a final walkthrough, the buyer may negotiate a credit or repair, or in cases of seller fraud, may have legal remedies even post-closing.

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