A buyer has a condition in their Purchase Contract to sell their existing property within 60 days. On day 58, the buyer receives a firm offer on their property, but the buyer decides to terminate the purchase agreement for the new property. The AREA Purchase Contract specifies that the buyer can waive the condition or provide notice that the condition is not satisfied. What are the legal implications if the buyer simply states they 'don't want to proceed' without formally terminating or waiving?

Question: A buyer has a condition in their Purchase Contract to sell their existing property within 60 days. On day 58, the buyer receives a firm offer on their property, but the buyer decides to terminate the purchase agreement for the new property. The AREA Purchase Contract specifies that the buyer can waive the condition or provide notice that the condition is not satisfied. What are the legal implications if the buyer simply states they 'don't want to proceed' without formally terminating or waiving?

Answer options: ✅ The buyer may be in breach of contract if the condition for selling their home was in fact satisfied or could have been waived.

• The condition automatically expires, and the contract legitimately terminates.
• The seller must grant an extension to the buyer as a goodwill gesture.
• The buyer's deposit is automatically returned, regardless of the reason for termination.

Correct answer: The buyer may be in breach of contract if the condition for selling their home was in fact satisfied or could have been waived.

Explanation: If a buyer has a condition for their benefit and fails to either waive it formally or provide notice of non-satisfaction when it could have been satisfied, they could be seen as failing to act in good faith or as breaching the contract, potentially leading to forfeiture of deposit or other damages.