Tennessee Realtor State Practice Exam

What is the main implication for Addison's situation if she did not perform an on-site inspection?

1. She is protected under the law

2. She may face legal penalties

3. She has a window to cancel the contract

4. She will lose her deposit

The correct answer is: She has a window to cancel the contract

If Addison did not perform an on-site inspection, the primary implication is that she may have a window to cancel the contract. In real estate transactions, buyers often have the right to conduct inspections before finalizing a purchase. If the inspection reveals issues with the property, buyers typically have the option to cancel the contract or negotiate repairs. If Addison skipped this step, depending on her state’s laws and the terms of her contract, she might still have a period during which she can back out without penalties. This option highlights the importance of conducting due diligence, as it allows a buyer to identify potential problems with a property before making a final commitment, thereby protecting her interests. While it's plausible to consider other implications of not conducting an inspection, the opportunity to cancel the contract is a significant protective measure for buyers who may otherwise find themselves obligated to proceed with a purchase that does not meet their expectations or standards.