Dangers of a Sellers Home of Choice contingency

    In real estate, for a real estate buyer, there are many contingencies.

    • Loan Contingency

    • Appraisal Contingency

    • Buyer’s Physical Inspection Contingency

    • All Buyer Investigations other than a physical inspection contingency

    • Condominium/Planned Development (PUD) contingency

    • Reports/Disclosures Contingency

    • Title: Preliminary Title Report Contingency

    • Sale of Buyer’s property Contingency

    • Review of documentation for leased or liened items contingency

    These “contingencies” keep a real estate buyer safe.  They need to be explained completely by your real estate representative.

    The reason you need to understand your contingency rights is because they going to be asked by the seller’s agent to be removed at some point.

    After you sign that document(the removal of contingencies), if you cancel the transaction, your deposit, most likely, will be forfeited(becoming the seller’s). In addition, it could also be the seller may have legal reason to come after you for more money other than your deposit.

    The Seller HOC Contingency

    On the seller’s side, they too have contingencies which they are able to have enforced. One such real estate seller contingency is the Home of Choice HOC contingency.Real estate representation plan

    This is typically revealed within the countering offer process. Sometimes the real estate agent will include this information on the private/confidential remarks section within the Multiple Listing Service so the real estate agents working with interested buyers, can let their buyers know of this contingency.

    However, most do not. This does not surface until a discussion happens between your real estate agent and the seller’s real estate, or during the counter offer process.

    Another reason for you to have your own realtor, when buying real estate, happens to be your response to the seller’s “Home of Choice” contingency.

    The seller’s agent, most likely, will not put a “time limit” on the seller’s demand for time to find their home of choice(HOC).

    That’s why you need your own agent to impose an enforceable, “written down and signed off”, time limit for the seller to find their home of choice.

    If they don’t, you could be waiting a long time. While you still will have your contingencies in place, and potentially can back out of the transaction if too much time elapses, it’s not a very comfortable position to be in.

    Thanks for listenting to today’s real estate HousingRadio.com real estate broadcast.

    There are lots of ways to purchase real estate and homes. The best way is when you have an exceptional guide throughout the process. I hope to be your guide. Let me know when you are ready for my assistance with your real estate needs.

    I’m Connor MacIvor with REMAX of Santa Clarita and REMAX of Valencia.

    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.
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