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Contingencies in a purchase agreement

What is a contingency?

Occasionally, once you’re in escrow you might come across a problem or two. But usually you will work them out with the seller and continue the escrow process. 

However, if a problem arises that cannot be worked out, you’ll want to be able to cancel the contract without penalty. The best way to do this with out serve penalty is to use what is known as a "contingency," and you’ll want to make sure you include them in your offer when you purchasing a home.

Contingencies in a purchase agreement

Most of the important contingencies are already written into most modern Real Estate Purchase Contrast. Some of these include, but are not limited to:

  • Obtaining financing

  • Appraisal on the property

  • Certain inspections must be performed and pass

  • Buyer’s Acceptance of the condition of the property

  • Sale of Buyer’s property, if you had to sell a previous home to buy the next one

These contingencies are included to protect you. If there is a specific issue you need to be a contingency, let your agent know so they can be sure to include it in the offer.

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bre#01262388, nmls #1082667, Broker Shan Roberts