by Phoenix attorney Christopher A. Combs, partner with Combs Law Group, P.C.
Question: During the inspection period, the buyer did not notice any odor in the home. After the inspection period expired, however, the buyer then noticed a very strong foul odor in the home. The seller’s cleaning lady told the buyer that the seller knew about this foul odor prior to selling the home. Can the buyer cancel the contract for the seller not disclosing this foul odor?
Answer: Probably. If the seller fraudulently failed to disclose the existence of this foul odor to the buyer, the buyer is entitled, even after the inspection period, to issue a Three-Day Cure Period Notice to the seller. See lines 169-170 requiring disclosure by seller of all material defects known by seller. If the seller fails to correct the existence of the foul odor, the buyer can cancel the contract, or close escrow and then proceed against the seller for damages.