Contingencies are Safeguards for the Buyer
By Wayne B. Pruner, Tigard Oregon Homes for Sale, Realtor, GRI
(Oregon First)
Contingencies are Safeguards for the BuyerA contingency is a stated event that must occur before a contract is binding. There can be many contingencies in a contract (sales agreement) to buy a house, but the two most common are the Financing and Inspection Contingencies.The Financing Contingency allows you cancel the contract if you cannot obtain a mortgage. You generally need to be somewhat specific about the mortgage you will obtain and agree to apply for the mortgage within a certain time frame. This contingency is meant to protect the buyer in-case financing can't be found. This also allows the buyer some protection if, for whatever reason, the loan fails to fund at the last minute at escrow.The Inspection Contingency gives you the right to have the home inspected, within a certain ...
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