Signing the Agreement

But as binding as the agreement is, with the right language built in you can walk away, extend your dates, or adjust your offer based on your findings during due diligence. We have rescinded our offers on a few properties for just cause. In fact there was one property that we pursued through the signing of the purchase and sale agreement. During the due diligence investigation process, the structural engineer on our team found the building was built on what they term in Arizona “expansive soil.” What that means is that the soil expands and contracts more than normal and can cause foundation problems. Knowing that, we looked further and found a twenty-foot hairline crack in the pool, small foundation cracks, and exterior wall separations. This was indicative of bigger problems that could be incredibly costly, and we felt the risk was too great, so we sent a letter to the seller stating that we were rescinding our purchase offer in accordance with the terms of the agreement.

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