A buyer includes a condition for a home inspection, to be satisfied within 7 days. On day 6, the inspector finds a significant foundation issue. The buyer decides not to proceed. What action should the buyer take with respect to the condition?

Question: A buyer includes a condition for a home inspection, to be satisfied within 7 days. On day 6, the inspector finds a significant foundation issue. The buyer decides not to proceed. What action should the buyer take with respect to the condition?

Answer options: ✅ The buyer should notify the seller in writing that the condition is not satisfied and the contract is terminated.

• The buyer must provide the seller with a copy of the home inspection report.
• The buyer must allow the seller an opportunity to repair the foundation issue.
• The buyer can unilaterally waive the condition and proceed with the purchase, despite the issue.

Correct answer: The buyer should notify the seller in writing that the condition is not satisfied and the contract is terminated.

Explanation: When a condition precedent, such as a home inspection, is not satisfied, the buyer must typically notify the seller in writing before the expiry of the condition period that the contract is deemed terminated, as per the AREA Purchase Contract terms.