Contracts
A Rhode Island purchase and sale agreement includes a home inspection contingency. If the inspection reveals significant defects and the buyer provides timely written notice, the buyer may:
AForfeit the earnest money deposit
BCancel the contract and receive a refund of the earnest money✓ Correct
CSue the seller for damages without canceling the contract
DRequire the seller to reduce the price by exactly the cost of repairs
Explanation
If the inspection reveals significant defects and the buyer properly exercises the inspection contingency within the specified time frame, the buyer may cancel the contract and receive a full refund of the earnest money deposit.
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