The period permits inspection, title review, environmental assessment, financing evaluation, and zoning confirmation. The buyer may typically terminate for any reason before expiration and recover its deposit.
Expiration converts the deposit to hard money.
Alternative Names:
Inspection Period|Feasibility Period
Why it Matters?
Expiration is a hard deadline that converts a refundable deposit to non-refundable, and a buyer that failed to deliver a termination notice before the deadline has committed to the transaction regardless of what diligence revealed afterward. Extension requests must be made and documented before expiration. Notice delivery method requirements are enforced literally, which catches buyers that emailed a termination where the contract required overnight delivery.
Frequently Confused with
Related terms
Frequently asked questions
What happens at expiration?
Why do termination notices fail?
