What to know about contingencies

| Mar 24, 2020 | Real Estate Law |

It isn’t uncommon for contingencies to be placed into real estate agreements involving properties in Texas and throughout the United States. For instance, a buyer may ask that he or she be able to inspect the property before purchasing it. A buyer may also ask for time to find financing before the deal becomes official, and it may be necessary for a lender to appraise the property as part of the financing process.

Those who currently own a home may stipulate that they will need to sell it before they purchase a new property. A home sale contingency might be ideal for those who are worried about carrying two mortgages or having to maintain two properties at once. It is important to note that such a contingency could make sellers anxious as they may want or need to liquidate their homes in a timely manner as well.

While contingencies can help to protect a buyer, it is a good idea to use them judiciously. This is because sellers tend to see them as potential roadblocks in the home sale process. It is also important to understand that buyers have an obligation to schedule inspections or obtain financing in a timely manner. Otherwise, a seller may have the right to cancel the deal or take other action against a buyer.

Those who have questions about the process of buying or selling a home may want to speak with a real estate law professional. Doing so may make it possible to understand how to make a purchase offer or the role that contingencies play in crafting one. An attorney might also help individuals resolve any disputes that they have during the process of finalizing a transaction. This may allow the sale to proceed in a timely fashion.