Contracts
In Tennessee, a purchase agreement that includes an 'inspection contingency' allows the buyer to:
AInspect the property at any time after closing
BNegotiate repairs or cancel the contract if the inspection reveals unsatisfactory conditions✓ Correct
CRequire the seller to fix all items found in the inspection
DHave the property reappraised based on the inspection
Explanation
An inspection contingency gives the buyer the right to have the property inspected and to negotiate repairs, price reductions, or cancel the contract if the findings are unsatisfactory within the contingency period.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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