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What are the buyers' remedies if they receive a Seller's Disclosure Notice about basement leaks after the contract is signed?

  1. They are obligated to proceed with the deal

  2. They can back out at any time during the option period

  3. They must seek legal advice

  4. They can't make any changes to the contract

The correct answer is: They can back out at any time during the option period

When buyers receive a Seller's Disclosure Notice indicating issues such as basement leaks after a contract has been signed, they generally have the right to reconsider their commitment to the transaction during the option period. The option period is a designated timeframe that allows buyers to conduct due diligence, including inspections and reviewing disclosures. During this period, they can assess the risks associated with the property's condition, including the newly disclosed issue of leaks. If buyers determine that they are not comfortable proceeding with the purchase due to the basement leaks or any other concerns revealed after the contract signing, they have the option to back out without penalty. The flexibility provided during this period empowers buyers to make informed decisions about their purchases.