Thought this might be useful info at some point (especially the 5% part)...

Posted by TAR yesterday:

My buyer’s right to terminate the contract under Paragraph 23 has expired, but his inspector found serious foundation problems and possible mold because of a prior roof leak. Is there any way the buyer can still terminate the contract after the option period because of these issues?

A buyer can’t terminate a contract after the option period has ended just because the inspector found problems. However, if the buyer’s lender requires that these problems be repaired as a condition of making the loan and the buyer and seller can’t agree on who will pay for the repairs, then the contract will terminate because the buyer could not get the loan provided for in the contract and the buyer will retain the earnest money. In addition, Paragraph 7E provides that if the cost of lender-required repairs exceeds 5% of the sales price, then the buyer may terminate the contract.

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