Recording-2025-03-11T13:02:17.353Z

Real Estate Contingencies

Home Inspection Contingency

• A home inspection contingency allows the buyer to conduct a thorough inspection of the property before finalizing the purchase.

• It helps identify any structural issues, safety hazards, or necessary repairs that may not be visible during a casual viewing.

• If significant problems are found, the buyer can negotiate repairs with the seller, request a price reduction, or withdraw their offer without penalty.

Appraisal Contingency

• An appraisal contingency protects the buyer by ensuring that the home’s value supports the purchase price.

• A professional appraiser evaluates the property to determine its fair market value.

• If the appraisal comes back lower than the agreed price, the buyer can negotiate a lower price or cancel the contract if the seller is unwilling to adjust the price.

Financing Contingency

• The financing contingency ensures the buyer can secure the necessary mortgage or financing for the property purchase.

• If the buyer fails to obtain financing, this clause allows them to back out of the deal without losing their earnest money deposit.

• This contingency is crucial as it protects buyers from being financially bound to a purchase they cannot afford to finalize.