Can I cancel a contract with Fannie Mae because of a city code violation?I am a week away from closing on a Fannie Mae home, and we are passed the inspection period, but still within the mortgage contingency period. We just received a report from the city that the home is in violation of property standards city codes. I understand the purchase is as is, but in section 7 of the Fannie Mae addendum, it says, If at any time the property conditions result in a violation of building codes or any other laws or regulations, either party shall have the right to terminate the agreement at any time prior to closing. In the same paragraph, Fannie Mae says the home is sold as is and they do not warrant that the property is up to code (zoning, building, local ordinances, etc.). Does this mean I have the ability to cancel the contract? Will I get my earnest money back?June 06 2014 - Aurora00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.