5 Common Contract Contingencies

by Robin Brady 09/08/2019

Contingency in real estate means an agreement of sale that must take place to continue the transaction. There are numbers of options that buyers can include in their contracts. Below are five common home offer contingencies to consider:

Inspection contingencies

Inspections are of great benefit in the process of buying a home. They enable the buyer to know the exact condition of the property. Most home buyers know inspections cover the general examination of all the systems of the home as well as checking the interior and the exterior. Apart from that, there are other inspections like checking for damages from wood-destroying insects. The inspection contingency comes into play once all the necessary checking is complete.

Financing contingencies 

Financing contingency is essential if you are buying your apartment through a mortgage. Financing contingency gives you the opportunity and time to apply for home purchase financing. The financing contingency states that if you are unable to secure a loan for the purchase of your home, you are eligible to look for other alternative means or you back out from the sale. 

Appraisal contingency 

Appraisal contingency and financial contingency work hand in hand. One of the requirements for granting a loan by most mortgage companies is a satisfactory appraisal. Do not forget that the evaluation is what shows the fair market value of a property. Therefore, an appraisal contingency is significant because it protects you in a situation where the sales price is not at par with the fair market value.

Home sale contingencies 

The home sale contingency is the favorite among property buyers. This contingency gives you a specified period to locate a buyer for your home. If this is not achievable within the stipulated time, you have the privilege of abandoning the sales without anything happening to your money. However, this contingency is not popular among sellers, so not often practiced.

Title contingencies 

Title contingency is also significant in real estate investment. A title to the home is a record that gives information about the ownership of a property. It is a legal document that indicates the people that have owned a property in the past and present. Apart from that, it also gives a record of any judgment made in the past regarding the property.

Be sure to read up and educate yourself on various contingencies that could apply to your sale agreement, so you always have protection. Let your real estate professional advise you about appropriate contingencies to accept and ones to avoid.

About the Author
Author

Robin Brady

I am a licensed Real Estate Broker in both NC and SC. I am a native of Davidson County and my primary residence is still there. My family and I have vacationed in Myrtle Beach since I was a little girl and we have owned a place there since 1995. I lived in Myrtle Beach for 4 years and I managed to go back to college and graduate from Coastal Carolina University with a batchelor's degree in Sports Medicine and Nutrition.

I love real estate! It is exciting to meet new people, it is challenging and forever changing and there is nothing better than finding the perfect home for a family or working to get a home sold for those who need to move on. I have my Accredited Buyers Representative Designation, as well as my Sellers Representative Specialist Designation. I have over a decade of experience and I would be honored to put my real estate experience to work for you!