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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