What Happens When You Remove a Contingency?

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Contingencies involve buyers and sellers negotiating terms and conditions under a set timeline. For buyers, contingencies give you time to assess the property thoroughly and see if it’s something you want to put your money behind. Sellers eagerly await the contingency period to close so that they can secure the deposit money and move on with their future projects.

In this article, we talk about the process of removing a contingency, explaining the advantages and disadvantages for both parties involved.

The Role of Contingency A

Contingency A is referred to as the “deposit contingency.” It is a crucial period of time when the buyer and seller are waiting to move forward. When this contingency is lifted, the buyer no longer has a claim to their deposit. It’s also a big milestone showing the seller that the buyer is serious about moving forward with the sale because they now have money in the game.

The Consequences of Not Closing a Contingency

If a buyer chooses to delay the close of a contingency, it sends a different message to the seller. The seller will not have full confidence in the current buyer and may choose to cancel the transaction and go find a new buyer. Sellers often have a tight timeline, so removing a contingency quickly is preferred.

Timing Is Key

A buyer may choose to prolong the contingency because they cannot make a decision on the property. This can lead to uncertainty and frustration for the sellers. Contingencies can significantly impact the seller’s intent to move forward past this property and onto another.

If you are a buyer with multiple offers on the table, the length and terms of contingencies can make all the difference. Shortening or tightening your contingency periods can make your offer more attractive to sellers, showcasing your commitment and seriousness as a buyer.

Contact Real Estate Experts for Help

The removal of a contingency during the real estate process is a mighty step toward finalizing the sale. Show your commitment by negotiating a shorter contingency period and adhering to your deadlines. If you have questions about real estate investment in Temecula, our team is ready to help. Send me a text, email, or call at (951) 473-0390 or [email protected].