You have viewed a property and decided this is the right one for you! Take a moment to ensure there are no hidden defects. Most properties have no serious defects, and most Sellers disclose all they know about the property.
You will also want to have contingencies that protect you if there are life changes that could affect your ability to get financing.
To remove any doubt, you will want to include “contingencies” in your Purchase Contract. If something happens during the buying process, you will be protected. Here is a summary of the common Purchase Contract contingencies.
1. Home Inspection Contingency
Ensure the home’s condition meets your expectations. If issues arise, negotiate repairs or walk away.
2. Financing Contingency
Safeguard your purchase by making it dependent on securing a suitable mortgage. If financing falls through, you’re protected.
3. Appraisal Contingency
Secure your investment! If the home appraises for less than the agreed price, renegotiate or exit the deal.
4. Title Contingency
Ensure the property has a clear title without legal disputes. Protect yourself from potential ownership issues.
5. Sale of Current Home Contingency
If you need to sell your current home to buy the new one, include this clause to avoid being stuck with two homes.
6. Homeowners Association (HOA) Contingency
If the property is in an HOA, ensure you review and agree with their rules before finalizing the purchase. Also make sure the HOA has financial reserves to make repairs as needed.
7. Insurance Contingency
If the property is in an HOA, ensure you review and agree with their rules before finalizing the purchase. Many have Master Policies that you will want to review.
8. Legal Review Contingency
Have a lawyer review the purchase contract to protect your legal rights and interests.
9. Septic/Water Contingency
If the property relies on a well or septic system, ensure their functionality through inspections.
10. Environmental Contingency
Protect against unexpected environmental issues that could affect the property’s value or safety.
In summary, clearly stating the contingencies of your offer in the Purchase Contract provides a structured framework that safeguards the interests of both buyers and sellers. These contingencies enable well-informed decisions and smoother transactions. Work with a knowledgeable real estate agent to navigate these topics.
For trustworthy guidance and support in your real estate endeavors, don’t hesitate to reach out to Gigi Realty PR. Our expertise ensures that you’ll be equipped to navigate the complexities of purchase contracts with confidence and success.
