Other Contingencies
Property inspection contingencies aren’t the only contingencies a homebuyer should put in their purchase offer. Other Purchase Offer Contingencies To Consider:
- Buyer’s attorney’s approval of the purchase offer.
- Obtaining financing and mortgage commitment.
- Bank appraisal equal to or greater than purchase price.
- Sale of a property owned by the buyer, if applicable.
- Pre-closing possession by the buyer, if applicable.
- Conditional removal of inspection contingencies.
Most so-called fill in the blank standard purchase offer forms used by agents are supposed to be drafted to be neutral to the buyer and seller. Part of the negotiating process should include the buyer asking for certain contingencies and changes or additions to the so-called standard language.
Don’t rely on attorneys to include proper contingencies. Attorneys know legal matters, they generally aren’t real estate experts. They won’t know what a property is worth, what the condition of the property is, or generally what contingencies are appropriate in a particular situation.
Previous Step: Inspection Contingencies Next Step: Monitor and Follow-up
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