It’s one of those key words that scare people in Real Estate transactions. What the heck is a contingency and what does it mean to you as a potential homebuyer?
Very simply, a contingency (or condition) is a provision in a real estate contract that specifies the contract can and will be voided or cease to exist upon the occurrence of or non-occurrence of a certain event. They are built in to the Purchase Agreement contract to protect the seller and the buyer. Here are some of the standard contingencies you’ll encounter in the process:
Mortgage Approval-The standard contract will state that the transaction will only be completed if the buyer’s mortgage loan is approved with substantially the same terms and numbers as in the contract
Appraisal-The contract will also be contingent upon an appraisal for at least the amount of the selling price
Closing Date-The completion of the transaction is contingent upon closing on or before a specified date.
Inspection-The satisfactory completion of a home inspection.
Satisfactory Walk-through-The closing will happen if the buyer is satisfied with a final walk-through of the property the day of or day before closing. All requested repairs have been completed.
Sale of Another Home-Sometimes the buyer is only going to be able to close if they get the funds from the sale of their current home, which is usually under contract. The new deal is contingent upon that deal closing.
Either the seller or the buyer can add many types of contingencies to the contract and contingencies are common and normal in real estate transactions, but remember to always enlist the help of a licensed Realtor to represent you and your interest in any Real Estate transaction.
Most people fall into one of two categories when it comes to warranties, those who buy them and those who just don’t. Unfortunately, what typically distinguishes the two is the life experience of having a warranty, filing a claim, and actually getting that repair or replacement and never having suffered a loss and knowing the frustration of being SOL.
When it comes to the biggest purchase of most of our lives, your home, being without that coverage when something goes wrong can be catastrophic.
As a Seller, offering a home warranty to you prospective buyer says you are confident that your home and its systems are in great working order, but should something go wrong…they are covered. In many cases the Home Warranty Company will offer free coverage while your home is listed with the commitment to provide your buyer with coverage!
As a Buyer this coverage on your new home, whether provided by the Seller or purchased by you, can take a great deal of the worry and stress out of your experience and allow you to focus on what matters..
I was really surprised a few years ago that Aloe plants are poisonous to most cats. It has a bitter taste, but for some reason they like to chew on it. So, kitty lovers, watch out for toxic houseplants…
Hello! Thank you for having the faith to check out the very first post in my new blog, I will do my best to write things you want to read, link you to things you want to know, and (exhale) to keep it brief. XOXO
Truth be told, when I decided it was time for me to get the facts about this business called Real Estate, all I knew for certain was you needed a license. Even after I Googled itI was unsure where to start. There were National and State exams and requirements, online and classroom Real Estate Schools, schools within some of the bigger companies…seriously, it’s a LOT of information.