MOST SELLERS HAVE A BASIC UNDERSTANDING OF CONTRACTS BUT WE OFTEN GET ASKED ABOUT THE CONTINGENCIES. WE RECOMMEND USING OUR ASSISTANCE OPTION PROGRAM TO BE SURE YOU AS THE SELLERS UNDERSTAND AND SOMEONE IS LOOKING OUT FOR YOU WHEN NEGOTIATING YOUR OFFERS.
Buyer contingencies are the most typical in a contract. Contingencies mention certain conditions which must be met for the contract to go to settlement. Here is just a few we deal with on a daily base when reviewing our sellers offers.
• A contingency clause defines a condition or action that must be met for a real estate contract to become binding.
• A contingency clause also gives the parties the right to back out of their contract under specified circumstances that are negotiated between the buyer and seller.
• An appraisal contingency protects the buyer and is used to ensure a property is valued at a minimum, specified amount.
• A financing contingency (or a “mortgage contingency”) gives the buyer time to obtain financing for the purchase of the property.
• An inspection contingency gives the buyer the right to have the home inspected within a specified time period.
Types contingencies you may run into are mentioned below
An inspection contingency addendum allows the buyer to back out of the contract if the inspection does not come back as expected. The buyer may request the seller to complete necessary repairs or offer money to cover the repairs. If the seller refuses, this addendum gives the buyer the right to terminate the contract and receive their earnest deposit back.
An appraisal contingency protects the buyer and helps make sure the home is valued at the contract price. If the property does not appraise for at least the amount offered the contract can be terminated. The seller might have the opportunity to lower the price to the appraisal amount in order for the buyer to receive a mortgage.
Buyers home contingency
This contingency means the buyer needs to sell their home before they can purchase yours. This contingency states that the buyer can cancel the sales contract without recourse and receive their earnest money back if they’re unable to sell their current home by a specific date.
Our Paperwork-to-Closing Assistance Option helps individuals who have opted to buy or sell a home with or without the service of a Realtor.
This program provides paperwork to closing assistance, including assistance in reviewing offers that come in from a Realtor. We also help you with the counter-offers and negotiations. The cost is a small, one-time fee or included with our full service package. Click here for more info about our assistance option program