Contingencies

• The Search
• Financing
• The Offer
• Counter Offers
• Contingencies
• Home Inspection
• Homeowner's Insurance
• Appraisal
• Title Insurance
• Closing
• FAQ's

The most common contingency is the financing contingency. If a buyer is unable to close on a loan for whatever reason such as an unexpected job loss, or perhaps the home did not appraise, the buyer will be able to terminate the contract without being in default.

The second most common contingency to a contract is the inspection contingency. This contingency allows the buyer to inspect the property and if suitable terms cannot be reached between the buyer and the seller concerning repairs the buyer can terminate without fear of recourse.

The third most common contingency is the contract being conditioned upon the buyer being able to sell his or her home prior to closing on the new one. This is a typical necessary for buyers that already own property since it can be undesirable to qualify for and pay for a mortgage loan on two properties at the same time.

The survey contingency is less common in day to day transactions, but can be common place in new homes and land deals. When a buyer is unsure of the boundary lines of a property or has concerns about easements or encroachments a survey can be conducted to alleviate those concerns. When this is a condition of the contract and closing it becomes a contingency.