Canceling contract after inspection period

By
Real Estate Agent with Good Company Real Estate www.ChandlerRealEstate.weebly.com License # SA577557000

Keep in mind that as a buyer, just because the inspection period has ended, if new things are discovered regarding the condition of the home, you do have the ability to cancel the contract.

Arizona Association of Realtors Legal Hotline News You Can Use

ISSUE:

After the inspection period, the buyer and his contractor went to the home to analyze the type of improvements that the buyer was going to make after the close of escrow. Mold is discovered. The buyer wants to cancel the contract because of the mold. The seller intends to remediate the mold. Can the buyer cancel the contract after the discovery of the mold?

Purchase Contract

ANSWER:

Yes. The seller is required to update the Seller’s Property Disclosure Statement (SPDS) to disclose the mold. The buyer then has five days to cancel the contract. If the seller does not update the SPDS, the buyer can issue a Cure Period Notice requiring the updated SPDS, and then the buyer can cancel the contract if the seller does not deliver the updated SPDS within three days.

Just because the home inspection period has expired, it doesn't mean that if additional things are discovered, the buyer has no recourse. When new things are discovered after the inspection period has ended, make sure the seller updates the SPDS to disclose that issue. If the seller does not update the SPDS, the buyer should immediately issue a Cure Period Notice requesting that the seller update the SPDS. The buyer has 5 days to cancel the contract upon the discovery of something like mold, and the buyer can also cancel the contract if the seller does not deliver the updated SPDS with the 3 day period. 

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         Contact Troy Erickson, Realtor®, Good Company Real Estate

                                Licensed Residential Realtor® in Arizona at 602-295-6807

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This post is for informational purposes only and should not be construed as legal advice. If you desire specific legal or tax advice, please consult the appropriate professional. The opinions expressed here represent my own and not those of my employer. Troy Erickson will not be held liable for any errors, ommissions, accuracy, validity, currentness, suitability, completeness; or any losses, injuries or damages arising from its display or use.

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Topic:
Real Estate Best Practices
Location:
Arizona Maricopa County
Groups:
Mesa Arizona Real Estate Connection
Chandler Arizona Real Estate
Ahwatukee Foothills Arizona Real Estate
Tempe Arizona Real Estate
Gilbert Arizona Real Estate
Tags:
buyer canceling purchase contract
canceling contract after inspection

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Rainmaker
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Victoria Ray Henderson
Buyer's Edge Company Inc - Bethesda, MD
Real Estate for Home Buyers with Buyer's Edge

Excellent post! Buyers are making the most expensive purchase of their life. They need to be protected and to know how they can get our of a deal. Enjoy your day!

Aug 29, 2018 05:28 AM #1
Rainmaker
799,219
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Victoria, thanks for your comment. Yes, it is important that buyers know there are ways to back out if negative things are discovered about the property, even after the inspection period.

Aug 29, 2018 09:11 AM #2
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Rainmaker
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Troy Erickson AZ Realtor (602) 295-6807

Your Chandler, Ahwatukee, and East Valley Realtor
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