Contracts
A North Dakota purchase agreement includes a home inspection contingency. The buyer's inspector finds major structural issues. Under a typical inspection contingency, the buyer may:
AOnly request repairs, not cancel the contract
BCancel the contract, request repairs, or negotiate a price reduction within the contingency period✓ Correct
CCancel the contract only if the repair cost exceeds $10,000
DOnly cancel if the seller refuses any repairs
Explanation
A home inspection contingency typically gives the buyer options to cancel the contract, negotiate repairs with the seller, request a price reduction, or accept the property as-is within the specified inspection period.
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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.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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