FACTS:                      

The buyer sent a BINSR to the seller with the following language, “Seller shall agree to extend the inspection period for five (5) more days. If the seller does not agree to extend the inspection period by five (5) days, then Buyer elects to cancel the contract.”  The Seller did not extend the inspection period.

 The buyer now wants to proceed with the purchase of the house.

ISSUE:

Is the contract cancelled?

ANSWER:                

Yes.

DISCUSSION:

Although the BINSR did not meet the requirements of Section 6j, since the Seller did not extend the inspection period, the buyer’s cancellation shall remain in effect.  However, if seller would like to proceed with the sale, the parties can mutually agree in writing to do so.

Best practice tip:  Use an addendum to extend the inspection period, not the BINSR