Thursday, June 17, 2021 / by Jo Reimer
You may be hearing in the news today about homebuyers waiving contingencies when trying to secure a home. You may be wondering, “What are contingencies?”
Well, let’s start with the definition-
A contingency clause defines a condition or action that must be met for a real estate contract to become binding. A contingency becomes part of a binding sales contract when both parties, the buyer and the seller, agree to the terms and sign the contract.
What are some examples of contingencies? The most common are finance, appraisal, and inspection. For example, you may need to finalize the sale of your current home before purchasing this home, or there may be contingencies regarding the inspection or appraisal. Although these may sound like things you should be concerned about, contingencies are actually there to help protect you.
So, you may be wondering what to do when you hear the word contingency. The answer is simple, have someone on your side that will take the time to discuss your scenario and lay out all the options and what choices you may have for each situation.
Have questions, want to discuss how contingencies may affect you or your situation? Let’s Chat, I am here for YOU!