Contracts

An Oregon real estate purchase agreement has an inspection contingency that expires on a specific date. If the buyer fails to act (neither approves nor objects) by the deadline, the most common interpretation is:

AThe contract automatically terminates
BThe contingency is waived — the buyer is deemed to have approved the inspection, and the contract continues✓ Correct
CThe deadline automatically extends by 5 days
DThe earnest money is forfeited immediately

Explanation

In most Oregon purchase agreements, if the buyer fails to provide timely written notice of disapproval before an inspection contingency deadline, the contingency is waived by default. The buyer is deemed to have approved the inspection, and the contract proceeds without the contingency.

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