Contracts
A New York real estate purchase contract contains an 'inspection contingency.' If a home inspector discovers a defective roof, the buyer's typical options under this contingency are:
AAccept the property as is or automatically get the deposit refunded
BRequest the seller repair the defect, provide a credit, or reduce the price; if the seller refuses, the buyer may cancel and recover the deposit✓ Correct
CDemand the seller install a brand-new roof at no charge
DAutomatically extend the contract for 90 days while repairs are made
Explanation
An inspection contingency in a New York contract typically allows the buyer to (1) accept the property as is, (2) negotiate with the seller for repairs, a price reduction, or a credit, or (3) cancel the contract and recover the deposit if the parties cannot agree on the inspection findings. The buyer cannot unilaterally demand specific repairs beyond what is agreed.
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