![]() ![]() The contingency is also useful as it allows you to leverage the ability to walk away into getting the seller to pay for the cost to repair the property. For example, you would not want to buy a property that needs a new roof for the same price as a property that does not need this fix. Thus, you must include a contingency that allows you to walk away from the deal if there are issues with the property. This is an extremely important part of the home purchasing process so you should not overlook or take this part of the process lightly. ![]() This inspection can also include electrical, pest, and lead-based paint inspectors. The home inspection involves an expert walking through the property and examining it for structural problems or damages. One important point is that states and even cities have different laws on home inspections. That is if the home inspection finds significant or expensive repairs-especially those in the home structure or foundation. This provision will allow you to cancel the deal. Unless you are purchasing a tear-down property or a simple piece of land, you should include a home inspection contingency. This protects and gives both parties legal options if either party fails to meet its contingencies. ![]() The agreement should be binding: Both the buyer and seller should ensure that the contingency contract is official and binding.This ensures that the process moves smoothly and both parties will be accountable if they fail to meet the contingencies. To keep a realistic closing period, the contingency contract should also create deadlines for both parties to meet. Further, many people do not want to wait more than 2 – 3 months to finish a transaction. Contingencies need deadlines: The real estate closing process is time-sensitive.Instead, the contingency could require that the seller replaces carpet in certain rooms or install a new heating and cooling system. ![]() People commonly get in trouble when they state vague requirements such as “property must have improvements.” This is an issue as there is no way to legally interpret whether or not the seller meets the contingency.
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