Contracts

A Washington home inspection reveals significant foundation issues estimated at $45,000 to repair. The buyer and seller are unable to agree on who will pay. The buyer's best contractual option (assuming a proper inspection contingency) is to:

ADemand the seller make all repairs before closing
BTerminate the contract and recover their earnest money by exercising the inspection contingency✓ Correct
CSue the seller for the repair costs
DReduce the offer price by $45,000 and proceed without the seller's agreement

Explanation

When inspection reveals major issues and the parties cannot agree on resolution, the buyer may exercise the inspection contingency to terminate the contract and recover their earnest money. The inspection contingency is designed for exactly this type of situation.

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