Contingencies on your purchase or sales contract

If you are in the process of buying or selling a home any other type of property, pay close attention to contingencies contained on your buying (purchase) or selling (sales) contract. Contingencies are certain conditions or agreements between you and the other party that you or the other party agreed and have to meet within specified time periods. If broken it can void the contract and you may lose the deposit and the opportunity to sell or buy your intended home or property. They are designed to protect both, the seller and the buyer.

Some of the most common contingencies include conducting an appraisal within a certain time period, certain conditions related to the condition of the property in question (most contract may say “as is”), home inspections, request for repairs, sale of another property prior to the purchase of the subject property, compliance with CC&Rs (Conditions, Covenants and Restrictions) and HOA (Home Owner’s Association) regulations. Many of these are to be complied with prior to the purchase or the sale of the property. Most of the real estate professionals are familiar with contingencies and they can guide buyers and sellers what to do or how to comply with contingencies.