Financing Contingency
A financing contingency is a condition in which the sale of the home is contingent upon the buyer obtaining financing. This means that if the buyer is unable to secure a mortgage, they have the option to back out of the sale without penalty. A financing contingency typically includes a deadline by which the buyer must secure financing.
Inspection Contingency
An inspection contingency is a condition in which the sale of the home is contingent upon the buyer completing a satisfactory home inspection. This means that if the inspection reveals any issues with the home, the buyer has the option to back out of the sale or renegotiate the purchase price. An inspection contingency typically includes a deadline by which the buyer must complete the inspection and provide a written notice of any issues.
Appraisal Contingency
An appraisal contingency is a condition in which the sale of the home is contingent upon the home appraising for at least the purchase price. This means that if the home does not appraise for the purchase price, the buyer has the option to back out of the sale or renegotiate the purchase price. An appraisal contingency typically includes a deadline by which the appraisal must be completed and a written notice provided.
Home Sale Contingency
A home sale contingency is a condition in which the sale of the home is contingent upon the buyer’s current home selling. This means that if the buyer’s current home does not sell, they have the option to back out of the sale without penalty. A home sale contingency typically includes a deadline by which the buyer’s current home must be sold.
Other Contingencies
Other contingencies may include contingencies for zoning, permits, and other legal matters. It is important to work with a real estate professional to understand the specific contingencies that may apply to the purchase of a property.