The buyer and seller entered into the Contract. On the BINSR, the buyer elected to cancel the transaction. However, the buyer indicated that the reason for the cancellation was that he decided not to move to Tucson, Arizona.
Did the buyer validly cancel the contract?
Generally speaking, the buyer must provide a reason related to the property condition, surrounding area or value in order to validly cancel the Contract during the inspection period. Here, the cancellation does not address either. However, the Contract addresses this issue. Specifically, Section 6j provides that if the buyer provides a cancellation that is not consistent with the contract provisions, then the contract is still canceled but the seller may issue a cure giving the buyer three (3) additional days to provide a valid reason for the cancellation. If the buyer provides a valid reason for the cancellation within the three-day timeframe, then the buyer is entitled to the return of the earnest money.