|
What are the standard contingencies?
When you buy a property you must understand that it is a big deal
and that it can affect you in lots and lots of different ways. Signing the
contract that obligates you to purchase the property is a massive step and one
that must only be taken when you are sure you know what you are getting
involved in and that you are confident of being able to conclude the deal.
Regardless of how you fell about the fundamentals of any contract,
and your ability to conclude the transaction, you should always have
contingencies, based on specific criteria, written into any contract.
The majority of purchase
offers include two standard contingencies:
Financing contingency
Inspection contingency
The financing contingency is
a clause that which makes the sale of the property dependent on the buyers
ability to obtain a loan commitment from a lender. Without this clause the
buyer may be legally liable to purchase the property, or lose your deposit,
even if they have been rejected for a loan from a bank or loan company.
Separate to the financing
contingency is the inspection contingency. The inspection contingency allows
buyers to have professionals inspect the property to their satisfaction. If the
inspection, which is usually carried out by a licensed and experience housing
inspector, reveals any major flaws or urgent repairs to the property, the buyer
is legally allowed to back out of the agreement to purchase the property.
To discuss this topic Click Here to go to our Online Forum |
