In real estate, for a real estate buyer, there are many contingencies.
Buyer’s Physical Inspection Contingency
All Buyer Investigations other than a physical inspection contingency
Condominium/Planned Development (PUD) 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
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.