Canceling purchase contract after inspection period

We signed the standard Arizona Association of Realtors contract to purchase a Gold Canyon house near the Superstition Mountains. During the 10-day inspection period, the seller agreed to make the minor repairs that our home inspector recommended. We then flew back to Canada.

Three days later, our real estate agent called us to say there had been a large monsoon that caused significant damage to the roof and some damage to the living room wall. The seller’s agent told our agent that the seller would fix everything before the close of escrow. Our agent asked us to let the seller make the repairs, do another inspection, and then decide if we wanted to buy the home. We no longer want to buy the house under any circumstances.

What is the legal procedure for us to cancel our purchase contract as soon as possible?

Answer: Under the purchase contract, the legal procedure is that the seller must immediately update the Seller's Property Disclosure Statement to disclose the new monsoon damage. You then have five days to cancel the contract. If there is damage to the home after the 10-day inspection period, and the buyer no longer wants to purchase the house, the seller and the buyer may cancel the contract mutually. The earnest money is then released to the buyer, and the seller’s agent puts the home back on the market to find another buyer.