Contracts
What happens to a Vermont purchase contract if the property fails a required inspection and the contract includes an inspection contingency?
AThe buyer must proceed with the purchase regardless
BThe buyer may terminate the contract and recover the earnest money deposit✓ Correct
CThe seller must make all requested repairs
DThe contract automatically extends for 30 days
Explanation
An inspection contingency protects the buyer by allowing them to terminate the contract and recover their earnest money if the inspection reveals material defects. The parties may also negotiate repairs or price reductions as alternatives to termination.
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