Legal Question in Civil Litigation in New York

The answer to this question really depends upon the contract terms. However, the typical contract provides that the plumbing heating and electrical system be in working order and the roof be free of leaks. What we try to do is have the home inspection done before the client signs the contract, so that if the inspection comes back with numerous problems the client can walk away without having sent a down payment. You also need to distinguish between a home inspection and an appraisal. An appraisal is done to determine the value and done after the contract is signed. The typical contract (but not all) is contingent upon a valid commitment. Therefore, if the house does not appraise for close to the purchase price, the contract is cancelled. However, this may not happen if the purchaser puts down a large down payment and there is nothing requireing the house to appraise for the purchase price. Be careful if you do not have an attorney, there are a lot of traps.