17 Day Loan Contingency Removal – What is it?
Filed under: Temecula Real Estate
When we write an offer on a piece of real estate in California, you automatically have a 17-day contingency removal clause. Do you know what this means and how it applies to your transaction?
What is a Loan Contingency Removal?
A loan contingency removal means the buyer has 17 days to inspect the home, appraise the home, and make sure they are going to be fully qualified for the loan before the deposit is turned over to the seller. This is the “due diligence” time for the buyer to identify any issues with the property. Further negotiations can happen if the seller needs to cover the cost of repairs.
When is the Deposit Released?
I often get questions from my buyers: when does the deposit get released to the seller? Technically, two things need to happen:
- The 17-day contingency period needs to end.
- You, as the buyer, need to physically sign over the deposit to the seller and instruct escrow to release those funds.
Regardless of whether you are buying or selling the home, it’s important to be aware that the time is coming to ask the buyer to release the deposit to the seller. This process gives the seller the protection of knowing that this transaction is moving forward.
Temecula Real Estate Services
Do you have any other questions regarding contingencies, buying a home, or selling a home? Contact me to learn more about how I can help. I’m happy to answer your questions and help with quality real estate services for your purchase. Call, text, or email to talk to me about your options: (951) 473-0390 or [email protected].