Which contingencies should you know about? Here are five of them.
What is a real estate contingency? By definition, it’s a future event or circumstance that is possible but can not be predicted with certainty. There can be quite a few of them included within a real estate contract, as far as buyers are concerned. Here are five of the most common contingencies buyers include in a contract and what they mean:
1. Financing. This kind of contingency means they will buy the house if the lender gives them the mortgage at the interest rate and terms they first agreed on and which are written into the sales contract.
2. Appraisal. This contingency means they will buy the house if the appraiser says the house is worth at least what the contract price is.
3. Inspection. In this case, the contingency states that will buy the house if they are happy with the inspections or negotiated repairs.
4. Survey. A contingency based on a survey means buyers will buy the house if they are happy with the way the improvements fall within the boundaries of that property, as determined by a boundary survey.
5. Title exam. This contingency means they will buy the house if the title company determines that there are no liens or encumbrances against the seller on the title of that house and it comes out clear.
Real estate transactions are complicated. Leave them in the hands of a professional. If you have any questions for me or any real estate needs I can assist with, I’d love to help you navigate the real estate jungle. Just give me a call or send me an email today. I look forward to hearing from you.