Contracts
An Oregon buyer submits an offer with a 10-day inspection contingency. On day 10, the buyer's inspector delivers a report, but the buyer's agent forgets to respond before the deadline. What happens to the contingency?
AThe contingency automatically extends for another 10 days
BThe contract terminates automatically
CThe contingency may be deemed waived, and the buyer proceeds without the contingency protection✓ Correct
DThe seller must extend the deadline by 5 days
Explanation
If the buyer fails to exercise or remove a contingency within the specified deadline, it is typically deemed waived. This means the buyer loses the right to terminate or request repairs under that contingency and must proceed to closing or face breach of contract.
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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.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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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