Can a buyer terminate a home purchase contract after inspection issues arise?

Full question:

Buyer has signed a contract to purchase a house with the condition that the house pass a home inspection. However, Buyer would like to terminate the contract because the home inspection revealed some serious damages and the Seller did not disclose these problems prior to the signing of the contract. The seller has stated that he will fix any problems. Can the buyer get out of the contract? What about the seller's promise to make the repairs?

Answer:

Generally, if the contract includes a contingency based on the buyer's satisfaction with the home inspection, the buyer can terminate the contract. If the contract states that the seller will repair any issues found during the inspection before closing, and the seller agrees to do so, the buyer is typically bound by the contract.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

When a buyer terminates a contract, they usually need to provide a valid reason, such as unsatisfactory inspection results if a contingency is in place. If the termination is valid, the buyer may receive their earnest money back. However, if the buyer terminates without a valid reason, they may risk losing their deposit or facing legal repercussions.