What is a contract Contingency?
It is a condition to the sale that the buyer wants meet before they will purchase the property. If the condition is not meet the buyer would without penalty, get back an earnest money deposit upon cancellation.
The types of contingencies vary; here are a few common examples.
Buyers who obtain a loan will be required by the lender to pay for an appraisal to substantiate the purchase price.
• Loan Contingency.
Even though a buyer may hold a loan preapproval letter, further investigations concerning the property or the borrower could result in a loan denial.
• Home Inspection.
Buyers have the right to hire a home inspector and conduct a complete inspection of the home.
• Lead-based Paint.
• Many homes built before 1978 contain lead-based paint.
• Wood Destroying Pest Inspection.
The contract should specify who will pay for the pest inspection
• Septic and Well Inspection.
Septic systems can get clogged from tree roots or deteriorate over time. Wells can become contaminated
• Radon, Mold or Asbestos Inspections.
Depending on a visual inspection, sometimes home inspectors will call for additional inspections by licensed entities to check for their presents
• Early Occupancy.
Contracts can be contingent upon the buyer and seller entering into a written agreement that allows the buyer to rent the property prior to close of the sale.
Your realtor will help you with any contingency that may be needed at the time of the offer.