What must happen if the buyer wishes to terminate a contract based on an inspection report?

A buyer wishing to terminate a contract based on an inspection report must ensure that they have delivered the option fee in a timely manner in order to exercise their right to do so. In many contracts, particularly in real estate transactions, an option fee is an amount paid by the buyer to secure the right to terminate the contract without penalty within a specified timeframe. Failure to pay this fee on time could result in the loss of that right, meaning the buyer might be bound by the terms of the contract despite any issues revealed in the inspection report.

Timely delivery of the option fee is often outlined in the contract’s terms as a prerequisite for maintaining certain rights, including termination due to dissatisfaction with the inspection findings. Thus, it’s essential for the buyer to adhere to this requirement to avoid complications and ensure they can legally terminate the contract if necessary.