California home purchase questionA contract was entered into with a 5 day property condition contingency. A foundation problem was found by the potential buyer during that time by a professional inspection. Buyers offered to remove property condition contingency with the condition that the sellers provide a $X credit to address the foundation issue. The sellers countered with an offer of a credit of one half of the $X requested. This counter is in writing, signed by sellers, but not buyers.What are the rights of the buyer in this situation. If they refuse to sign the counter from the seller, can they refuse to remove property condition contingency and exit the deal? Can they re-counter asking for three quarters of $X?Thank you
Good afternoon. This is basic contract law. Once the seller countered the buyer's proposal, the buyer's proposal was automatically terminated. The buyer's still have the right to terminate under the original contract. The buyers have the right to terminate the contract without recourse to the buyers and/or offer another proposal for the 3/4 amount. Only when any amendment to the original contract is agreed upon and signed by both parties is any amendment legally valid.
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thanks for the prompt answerI think there was a typo:The buyers have the right to terminate the contract without recourse to the BUYERS and/or offer another proposal for the 3/4 amount.should that read SELLERS?
Actually, I did mean buyers. It means that the buyer has the right to terminate and receive any deposit back so that they don't lose any money in the deal.
Glad to help.
okay, so to be 100% clear, the buyers can refuse to lift the property condition contingency and walk away and get their deposit back and have no further obligation or exposure?thanks again
You're welcome. Yes, that is absolutely correct.
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