When you go to buy a new home, several conditions outlined in your real estate law contract must be met before you can close. These conditions, which are referred to as contingencies, often cover issues like insurance, financing, inspections, and more.
How Contingencies Work
As the buyer, you and the seller are allowed to request that contingencies be placed in the written real estate law contract. In this contract, you will be allotted a certain period of time, which usually lasts for a few weeks, where you and the seller work to meet or remove any included contingencies. For example, if it is required that you attain a mortgage and schedule a certain type of inspection, you must get this done by the date that the contract states.
While you wait to close, you can advise the seller of the progress that you make meeting these contingencies. If you or the seller fails to meet these terms, either of you can back out of the sale or negotiate the issue once more.
Types of Contingencies
Some contingencies are standard, while others are uncommon. For example, most purchase contracts require that the buyer have a general property inspection completed before the date of closing.
During the purchasing process, you may find that the seller does not agree to the terms contained in the agreement or wishes to renegotiate. If you need help determining if a contingency is fair or need assistance reviewing any aspect of your real estate law purchasing contract, contact us at Northpointe Law Group.