Contracts
In Virginia, the standard residential purchase contract includes an optional home inspection contingency. If the buyer timely objects to inspection findings, what typically happens?
AThe contract is automatically void
BThe buyer receives a full refund of earnest money
CThe parties must negotiate repairs or a credit, or the buyer may void the contract✓ Correct
DThe seller must make all repairs
Explanation
Under a typical Virginia home inspection contingency, if the buyer objects to defects discovered, the parties negotiate repairs or credits. If they cannot agree, the buyer may void the contract and receive the earnest money back.
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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.
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.
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