Contracts
An inspection contingency in a purchase contract typically allows the buyer to:
ARequest a price reduction for any reason
BCancel the contract or negotiate repairs if unsatisfactory conditions are found during inspection✓ Correct
CConduct inspections after closing
DRequire the seller to make all repairs at any cost
Explanation
An inspection contingency allows the buyer to have the property professionally inspected and, if unsatisfactory conditions are found, to cancel the contract, request repairs, or negotiate a price reduction.
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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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