On Contingencies

Contingencies on a contract are conditions that must be met in order for the sale to go through. The most common ones in residential real estate are for inspections and financing.

An inspection contingency protects the buyers. It gives them the right to inspect the property to there liking. If the buyers find it unsatisfactory to them and the sellers refuse to correct the problem, the buyers can, most likely, walk away.

A financing contingency also protects the buyers. If the buyers use diligent efforts to attain a mortgage but can’t, they could also walk away from the contract.

An inspection contingency can run 10 to 14 days from the effective date-acceptance of the contract. Financing contracts can run up to 30 days or more. In a tight or strong market, where buyers are lining up with money to burn, smart sellers often request shorter time frames for contingencies-perhaps 3 days for inspections and 10-14 days for financing.

Work to do

A week or two may sound like plenty of time to satisfy contingencies, but as most people do, they wait until the last minute. Like the old adage-If you want something done fast, give it to a busy person, not someone with lots of time in their hands. The one person with plenty of time will undoubtedly wait for the last minute to get the job done. The more time you allow, the greater the risk of failure you face. 

A lot needs to get done in a short period of time:

• Select inspectors
• Complete Inspections
• Order further inspections if necessary
• Choose a mortgage broker
• Assemble your financial documentation
• Apply for a mortgage (Get Pre-Approved)
• Choose a loan
• Appraisal (Schedule it a day or so after the inspections are done)
• Choose an Insurance Broker
• Choose and Attorney if needed
• A closing agent

A good Real Estate Agent will simplify the process.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group