Question 30

The cost of this inspection will be paid from the earnest money deposit only if the parties have agreed to it in writing.

The payment for the inspection from the earnest money deposit is contingent upon a written agreement between the parties involved.

A) automatically.

This option is incorrect because the payment for the inspection is not automatic; it requires an explicit agreement from the parties. Without such an agreement, the cost cannot be deducted from the earnest money deposit.

B) only if the inspection reveals misrepresentation.

This choice is also incorrect. While discovering misrepresentation may impact the negotiation or decision-making process, it does not dictate the payment terms for the inspection. The cost is specifically tied to a prior written agreement.

C) only if the parties have agreed to it in writing.

This option is correct as it clearly states that the cost of the inspection will be covered by the earnest money deposit only if there is a written agreement. This ensures that both parties are aware of and consent to the terms regarding the inspection costs.

D) under no circumstances.

This choice is incorrect because it suggests that the cost of the inspection cannot be deducted under any conditions, which is not true. If the parties agree in writing, the cost can indeed be paid from the earnest money deposit.

Conclusion

The correct answer emphasizes the necessity of a written agreement for the inspection costs to be paid from the earnest money deposit. All other options fail to recognize this essential requirement, making option C the only accurate choice in this context.