why have contingencies ? isn't the good old hand shake enough ?
|Posted on 31 March, 2014 at 15:40|
The answer is a big no!!! unless you want to gamble that what you want will be or not be done. Till this day I have people ask me that because they believe everyone is honest and willing to do what they say they will do when selling or buying a home. It's not because people are necessarily dishonest, it happens for a number of reasons . When people are selling or buying there is an awful lot of emotion that goes into the process, very understanding considering that both parties are making some of the biggest decission, financila and other wise in their life. With that things can come unravel and people don't always mean to do what they do. Ok sometimes some people are mean or in considerate but but for the most it's not that. In what ever cause the situation it leaves you without a contingency and with sometimes a big mess. The big mess can be financially or legal or both,
For those who are not familiar with real estate contingencies they basically are stipulations /statement that allows you to back out of a contract without penalty. For buyers it is used to make sure that they are protected because of possible denial or uncertaincy of getting a home morgage to finance their new home purchase , an appraisal not being as high as purchase price and if the seller will not come down on price you as the buyer have the right to back out of contract. Another reason would be an Inspection Contingency, that basicly allows the buyer with in a certain time frame ranging from several days to two weeks to have inspections done and possibly have apprasils done on any reapirs if neccesssary.
I and others will say that the least contingency when making an offer allows your chances for acceptance from an owner to be greater but I mght add n my opionion that to leave out any that makes you feel very uncomfortable or leaves you at a greater risk could be unwise, Another popular and wise contingency can be if you have a current house on the market and need to sell before buying another house. This contingency allows the home owner an oppertunity to back out of a contract if they can't sell within a certain time frame. There are litterally thousands of contingency clauses and new ones are being used everyday so I just covered some of the major ones. others are: Termite, lead paint, deed,mold, HOA docks, private well nspection , insurance.
I also reccomend that cleints should refer with their real estate lawyer as well as their agents for second and legal advice but in the end it is the responsibility of the buyer or the seller to chose what contingencies they feel comfortable about and what suits and protects them the most and what in their judgement is neccessary. Others can advice but only you can or have the right to decide what actions, you take or don't take.