Contingencies must be removed before closing a real estate transaction. A purchase offer may hinge on several factors, including the buyer securing financing at a specific interest rate, the results of a home inspection, the seller disclosing known issues with the property, a pest inspection, the seller completing agreed-upon repairs, or the buyer selling another property.
Typically, contingencies must be removed in writing by certain deadlines before the deal can close. In some purchase agreements, if contingencies are not addressed by their specified deadlines, they may be considered automatically removed.
From the seller’s perspective, each additional contingency can weaken an offer. While contingencies serve important protective purposes, buyers should remember that including too many can reduce the chances of their offer being accepted.
When an offer is contingent on the buyer selling another property, the sellers may find themselves in a position where they have to wait until the buyer’s property is sold to confirm the closure of the transaction. Consequently, sellers often include an “out” clause that stipulates:
– The contingent buyer must meet a specified deadline to remove the contingency or terminate the agreement.
– If an acceptable offer is received from another party, the contingent buyer must either waive the contingency or terminate the agreement within a specified timeframe (often two or three days).
If contingent buyers waive this contingency and have not yet closed the transaction, provisions should be established for what will happen if the deal fails due to the buyers’ inability to sell their property. Generally, this results in the forfeiture of the earnest money. Therefore, the earnest money deposit should be substantial enough to protect the seller in such situations.
Contingencies must be removed before closing a real estate transaction. A purchase offer may hinge on several factors, including the buyer securing financing at a specific interest rate, the results of a home inspection, the seller disclosing known issues with the property, a pest inspection, the seller completing agreed-upon repairs, or the buyer selling another property.
Typically, contingencies must be removed in writing by certain deadlines before the deal can close. In some purchase agreements, if contingencies are not addressed by their specified deadlines, they may be considered automatically removed.
From the seller’s perspective, each additional contingency can weaken an offer. While contingencies serve important protective purposes, buyers should remember that including too many can reduce the chances of their offer being accepted.
When an offer is contingent on the buyer selling another property, the sellers may find themselves in a position where they have to wait until the buyer’s property is sold to confirm the closure of the transaction. Consequently, sellers often include an “out” clause that stipulates:
– The contingent buyer must meet a specified deadline to remove the contingency or terminate the agreement.
– If an acceptable offer is received from another party, the contingent buyer must either waive the contingency or terminate the agreement within a specified timeframe (often two or three days).
If contingent buyers waive this contingency and have not yet closed the transaction, provisions should be established for what will happen if the deal fails due to the buyers’ inability to sell their property. Generally, this results in the forfeiture of the earnest money. Therefore, the earnest money deposit should be substantial enough to protect the seller in such situations.
Buying a house isn’t just about the property itself, it’s about finding a place to call home. Happy house hunting!
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Today is a good day to get started, let’s embark on this exciting journey together. Reach out to Ashe County Realty today, and let our experienced team guide you through the real estate market. Whether it’s a cozy cabin in the mountains or a charming home in town, we will help you find the perfect place to call your own.
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