Contracts
A Pennsylvania buyer cancels a purchase contract under the inspection contingency after receiving a home inspection report revealing a cracked foundation. The buyer is entitled to:
AOnly a partial refund of earnest money
BA full refund of their earnest money deposit✓ Correct
CThe full sale price as damages
DNothing — inspection results are the buyer's risk
Explanation
When a buyer exercises their right to cancel under an inspection contingency — for any reason permitted by the contingency language — they are entitled to a full refund of their earnest money deposit. No damages or penalties apply, and the buyer is released from all obligations under the contract.
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