BUYING A HOME PART III. MAKING AN OFFER: CONTINGENCIES
Believe it or not, but there are all sorts of fun forms when it comes to purchasing a house. The main purposes of the forms are: to make the terms of the offer clear to the parties, protect their interests and help resolve problems if there are any.
As a buyer, make sure that you understand what you are signing, don't be afraid to ask your realtor a bunch of questions, that's a significant part of our job!
So contingencies... Here are the most common ones (and there is much more to it just because we love paperwork;): - Acceptable home inspection;
- Obtaining an acceptable homeowners insurance;
- An acceptable title report (marketable title);
- Final approval on your financing (including an acceptable appraisal);
- Sale of the buyers home.
What it means is that we are telling the seller that you are not obligated to purchase the chosen house unless ALL of the things that we ask for are satisfied. You don't have to go with the sale if inspection report shows 30 problems with the house and the seller doesn't want to address it, you don't have to buy if you were not able to obtain financing that we mentioned in the Purchase and Sale Agreement. Title is not marketable - don't have to buy, and you will get your earnest money deposit back!
There is always negotiation peace to the whole process, so don't feel like you have to give up on the house.
If you feel like you need some more explanation on this topic, please let me know and I would be happy to explain every single piece)
Have a wonderful week everyone!