A buyer and a seller have a purchase agreement that contains a home inspection contingency. The buyer has applied for a VA mortgage. After the home…

The seller's counteroffer to the buyer's addendum constitutes a rejection of that specific addendum, not the original, executed purchase agreement. The original contract remains valid and in effect while the parties negotiate the terms of the home inspection contingency. The negotiation over repairs is a process to satisfy a condition within the existing contract. Until the contract is terminated by either party according to the terms of that contingency (e.g., the deadline for resolution passes) or by mutual agreement, it remains a binding agreement.

A. The counteroffer is on the proposed addendum for repairs, not the primary purchase agreement. The underlying contract is not automatically voided by this negotiation.

C. The property is under a valid, binding contract. Advising the seller to place it back on the market would be improper and could expose the seller to legal action for breach of contract.

D. A VA appraisal is a mandatory requirement for a VA-guaranteed loan and is entirely separate from a buyer's private home inspection. The VA appraisal ensures the property meets value and Minimum Property Requirements (MPRs).

1. Massachusetts Board of Registration of Real Estate Brokers and Salespersons. (2018). Real Estate Candidate Information Bulletin. PSI Services LLC. Page 11, Section: "Contracts." This section outlines the legal enforceability of contracts, implying that a contract remains in effect until properly terminated. A counteroffer on a contingency addendum is part of the negotiation process, not an automatic termination.

2. U.S. Department of Veterans Affairs. (2023). Lenders Handbook, VA Pamphlet 26-7. Chapter 12: "Minimum Property Requirements." Section 12.01, "VA Minimum Property Requirements," clearly distinguishes the VA appraisal and MPRs from a home inspection, stating the appraisal is for the lender and VA's protection, not the veteran's. It confirms the VA appraisal is a non-negotiable part of the loan process.

3. Gaudio, A. R., & Kanner, M. J. (2021). The American Law of Real Property. American Bar Association. § 10.03, "Contingencies." This legal treatise explains that purchase agreements with contingencies remain valid contracts, with the parties' obligations being conditional. The negotiation surrounding the contingency's satisfaction does not invalidate the underlying agreement.