A buyer includes a condition in an Agreement of Purchase and Sale stating, 'This offer is conditional upon the Buyer obtaining a satisfactory home inspection report by [date]'. If the home inspection reveals significant issues that the buyer finds unsatisfactory, what typically happens?

Question: A buyer includes a condition in an Agreement of Purchase and Sale stating, 'This offer is conditional upon the Buyer obtaining a satisfactory home inspection report by [date]'. If the home inspection reveals significant issues that the buyer finds unsatisfactory, what typically happens?

Answer options: ✅ The buyer can terminate the agreement and have their deposit returned, provided they notified the seller before the condition's expiry.

• The buyer is obligated to proceed with the purchase but can renegotiate the price based on the inspection report.
• The seller is required to fix all identified deficiencies before closing.
• The buyer forfeits their deposit if they choose not to proceed due to the inspection report.

Correct answer: The buyer can terminate the agreement and have their deposit returned, provided they notified the seller before the condition's expiry.

Explanation: A satisfactory home inspection condition allows the buyer to terminate the agreement and receive their deposit back if the inspection reveals issues that are not satisfactory to them, provided they notify the seller within the specified timeframe as outlined in the contract.