Standard Contingencies When Buying A House
When you buy a property you must understand that it is a big deal and that it can affect you in lots and lots of different ways. Signing the contract that obligates you to purchase the property is a massive step and one that must only be taken when you are sure you know what you are getting involved in and that you are confident of being able to conclude the deal.
Regardless of how you fell about the fundamentals of any contract, and your ability to conclude the transaction, you should always have contingencies, based on specific criteria, written into any contract.
The majority of purchase offers include two standard contingencies:
*Financing contingency Inspection contingency
*The financing contingency is a clause that which makes the sale of the property dependent on the buyers ability to obtain a loan commitment from a lender. Without this clause the buyer may be legally liable to purchase the property, or lose your deposit, even if they have been rejected for a loan from a bank or loan company.
*Separate to the financing contingency is the inspection contingency. The inspection contingency allows buyers to have professionals inspect the property to their satisfaction. If the inspection, which is usually carried out by a licensed and experience housing inspector, reveals any major flaws or urgent repairs to the property, the buyer is legally allowed to back out of the agreement to purchase the property.
