What are contingencies in a purchase contract?
A. When your purchase a home, you want to anticipate potential problems so that if something does go wrong, your can cancel the contract without penalty. These are called “contingencies” and you must be sure to include them when you offer to buy a home. For example, some “move-up” buyers often agree to purchase a home before selling their previous home. Even If the home is already sold, it is probably a “pending sale” and has not closed. Therefore, you should Make closing your own sale a condition of your offer. If you do not include this as a contingency, you may Find yourself making two mortgage payments instead of one.
