Contracts
A Pennsylvania buyer who removes an inspection contingency without completing an inspection is:
AEntitled to a full refund of earnest money if defects are later discovered
BWaiving their contractual right to back out based on inspection results✓ Correct
CAutomatically entitled to a price reduction for any defects found later
DRequired to complete an inspection by law even after removing the contingency
Explanation
Removing an inspection contingency means the buyer is accepting the property in its current condition without the contractual protection of being able to back out based on inspection findings. The buyer still has legal remedies for seller fraud or material misrepresentation, but not for conditions they chose not to inspect.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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