FACTS: Buyer and seller entered into an Arizona REALTORS® Residential Resale Real Estate Purchase Contract (“Contract”).  In Section 8, the parties agreed that “buyer’s earnest money shall be non-refundable after the Inspection Period.” 

ISSUE: Does the Inspection Period include the buyer disapproval and seller response times set forth in Section 6j of the Contract?

ANSWER: Probably not.

DISCUSSION:

The Contract provides at line 213 that “Buyer’s Inspection shall be ten (10) days or ___ days after Contract acceptance.”  Therefore, the Inspection Period probably would not be interpreted to include the buyer disapproval and seller response times set forth in Section 6j of the Contract.  This issue can be avoided by use of the “Non-Refundable Earnest Money” provision in the Additional Clause Addendum that provides “earnest money shall be non-refundable unless Buyer elects to cancel pursuant to Section 6 of the Contract. . . ”