Real Estate News

Definitions- Contingency

January 31st, 2022 4:07 PM by Heidi Gravel

The term "contingency" is more frequently used in today's housing market.

Buyers are waiving contingencies to win offers and even removing contingency periods. 

Here are some of the most common contingencies:

  • Financing contingency: If a buyer needs a mortgage loan to buy the home, the buyer will typically include a financing contingency that allows the buyer to terminate the deal if the loan is not approved via a loan commitment letter by a certain date.
  • Inspection contingency: This gives the buyer the right to get the home inspected and negotiate further if there are repair issues. The inspection usually happens 5–7 business days after mutual acceptance. With real-estate-owned homes (REOs), the banks rarely agree to pay for any repairs; buyers should still get an inspection, but they'll need to cover any repair costs themselves.
  • Sale contingency: The buyer's offer on a new home is contingent upon the buyer selling his or her current home.
  • Title contingency: The buyer's offer is contingent upon title to the home being clear of any liens. This contingency grants the buyer the right to review a title report, which documents the home's history of ownership.
  • Appraisal contingency: The success of the offer depends on an appraisal confirming that the home's value is equal to or greater than the buyer's offer amount.

Give us a call before taking any risks in todays market.

Have a Blessed Monday and an Amazing Week...N.G

Sources: Curated Social, Redfin

#Contingency #SellersAgent #HousingMarket #HelpfulAgent #Consult #Realestate

Posted by Heidi Gravel on January 31st, 2022 4:07 PM



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