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Contingency of Sale

  • If your proposal says, "This offer is contingent upon (or subject to) a certain event", you're saying you will go through with the purchase only if that event occurs. The following are two common contingencies contained in a purchase offer:

    • Financing. You, the buyer, must be able to get specific financing from a lending institution. If you can't secure the loan, you will not be bound by the contract.

    • Home inspection. The property must get a satisfactory report by a home inspector "within 10 days after acceptance of the offer" (for example). The seller must wait 10 days to see if the inspector submits a report that satisfies you. If not, the contract would become void. Again, make sure all inspection conditions are detailed in the written contract.

  • The above two examples are contingencies that are common for residential real estate home purchases. However, contingencies can be more specific to your situation. And, technically, you can write in any contingency you would like in an offer or what the Seller would like to add in the counter offer. However, contingencies are only valid for a contract if both the buyer and the seller agree and accept the offer.

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