What Exactly Are Real Estate Contingencies?
Filed under: Temecula Real Estate
We talk about the term “contingency” as we’re planning to buy or sell a home. Sometimes, a contingency can be a chance to negotiate and get into a home regardless of newfound discoveries after an inspection or appraisal. A contingency is a safety net included in offers that accounts for the unexpected.
So, how can a contingency work in your favor? Let’s talk about it.
Predicting the Unpredictable: The Role of Contingencies in Real Estate
Contingencies are added to the real estate agreement in order for the sale to continue after a new discovery. When you first walk through a home and put in an offer, you do not have a complete picture of the condition or value of the home. Contingencies are “if” statements that provide a way out of the binding agreement if the conditions are not met by a specific date.
One of the most common contingencies is the inspection contingency. If the inspection reveals significant issues, the contingency allows you to back out of the purchase without penalty — preserving your deposit.
Protecting Your Investment: How Contingencies Safeguard Your Deposit
The contingencies in a real estate agreement are in place to protect the buyer’s deposit. When you put earnest money down, you reserve your spot as an interested buyer in the home. Until the contingencies are removed, your deposit is protected.
Uncertainties such as the property’s appraised value, the thoroughness of the inspection, and the buyer’s ability to secure financing are all reasons contingencies exist. If contingencies weren’t included in the contract, the buyer may be forced to follow through with a sale even after discovering faults in the property.
Temecula Real Estate: Navigate Your Purchase with Expert Help
If it’s time to buy a home in Temecula, learn how to use contingencies to your advantage. Our team can provide you with counsel throughout the process to help you secure your ideal home.
For more information, feel free to reach out. You can text, email, or call me at (951) 473-0390 or [email protected]. We will work to protect your interests every step of the way.