Missed the Deadline to Terminate? Read This!

Q: I represent the seller in a pending transaction. The inspection period ended yesterday (per Section 12(a) of the Sale Agreement), but today the buyer’s agent sent over a signed copy of OREF 064 – Notice of Unconditional Disapproval and OREF 057 – Termination Agreement. What happens next?

A: Per the terms of Section 12(a) of OREF 001 – Residential Real Estate Sale Agreement, by failing to provide OREF 064 by 5:00 pm on the final day of the inspection period, the buyer is deemed to have accepted the condition of the property. It is too late for them to terminate the transaction based on the Inspection contingency. This is further confirmed by the language included in OREF 064 – Notice of Buyer’s Unconditional Disapproval in the section referencing disapproval based on inspection reports. The seller has the right to enforce the remaining terms of the Sale Agreement.

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