Coming to an agreement on the sale or purchase of a new home can be exhilarating and scary all at the same time. Deciding that it’s time to enter the real estate market in Collier County, Florida, is not easy. You need to make an informed decision before putting pen to paper. You also need to know the types of contingencies that can be included in a real estate contract.
The financing contingency is used to provide an out for the potential buyer in the event that they are not approved for financing. If any money was added to escrow by the buyer, he or she will get it back in its entirety.
The inspection contingency is added to a real estate contract to protect both parties. If the inspection on the property either fails or comes back with red flags, the buyer can cancel the contract if the issues are too serious to move forward with the purchase.
A house sale contingency is added to the contract to protect the buyer. It gives the buyer time to sell their current home, so they can use those proceeds to acquire financing and make a down payment on the new home.
Along with the house sale contingency, you will find the kick-out contingency. This allows the seller of the property to continue marketing the home while waiting for the buyer’s home to be sold. This allows them to find a second or better offer that they can accept if the first buyer cannot sell their home.
The contingencies mentioned in this post will likely be present in every real estate contract you sign in life. Make sure you are protected at all times when buying or selling property using one or more of these contingencies.