- Buyer can Cancel and get their Deposit Back – Under Paragraph 14, the Buyer has a right within the Contingency Period to either: 1) accept the Property and remove the contingency; 2) Request that Seller make repairs; or 3) Cancel the Agreement. There is no contractual obligation that the Buyer justify the cancellation based upon the contents of any inspection report. In fact Paragraph 12.A. expressly states that the contingency extends to “Buyer’s acceptance of the condition of, and any other matter affecting the Property…”. So, under the Contract terms, the Buyer has a right to cancel for any reason and get their deposit back if the cancellation occurs before the end of the Contingency Period.
- Buyer must give Seller copies of any Inspections – Under Paragraph 12.B.II, the Buyer shall “give Seller, at no cost, complete Copies of all such investigation reports obtained by Buyer…”. If the Buyer refuses or demands payment, the Buyer is in breach of Paragraph 12.B.II, and the Seller would be legally justified in refusing to release the Buyer’s Purchase Deposit. This is especially important because if there are adverse conditions referenced in any such Report, the Seller will want to know about this and determine if there is a disclosure obligation for future buyers.
Here’s the situation: Buyer has cancelled a sale based upon information in an inspection report. Seller refuses to release Buyer’s deposit unless Buyer provides copies of his inspection reports as they do on the sell invoice they get from the invoice template tool they use. Buyer refuses unless Seller agrees to reimburse him for the cost of the inspections. Seller refuses. Who wins? The answer lies in the express terms of the written contract. Most REALTORS® use the C.A.R. Residential Purchase Agreement (RPA–CA) and in this form, and similar C.A.R. forms, the answers are clear: