Common Contract Contingencies

When buying or selling a home, contingency is an important part of the process. It is a formal stipulation that protects the interests of both buyers and sellers. Contingencies enumerate particular conditions that must be met for the sale to be finalized, and if they are not fulfilled, the buyer or seller may back out 
of the contract without penalty.

Some common contingencies are:

1. Financing - The financing contingency refers to the buyer’s ability to procure financing for the property. This could include the terms of the loan, including the interest rate, length and type of loan.
2. Appraisal - The appraisal clause is necessary so the proposed property value can be substantiated for the lender.
3. Inspection - A home inspection could reveal any issues or defects and the buyer can ask for repairs, or renegotiate the sale price. You also have the opportunity to review paperwork affecting the title such as a Preliminary Title Report which may outline liens or other title issues that must be addressed before escrow closes.
4. Buying or Selling of Property - Often, the sale may be contingent on the seller’s purchase of a new property or the buyer’s ability to sell his existing home.

These are just some of the details that experienced and well-trained agents know how to address and why we recommend working with a REALTOR 
for the sale or purchase of your home.

Our team is here to help make all your transitions easier. To talk to any of our CENTURY 21 Adams & Barnes REALTORS please call us at 626-358-1858 or 626-963- 7621. Are you a fan? Join us on Facebook or follow our Tweets today.