What are contingencies in a purchase?
There are two standard contingencies: a financing contingency, which makes the purchase conditional on the buyers’ ability to obtain a loan commitment from a lender, and an inspection contingency, which allows the buyers to have professionals inspect the property to their satisfaction. A deposit could be forfeited by the buyers under certain circumstances, such as the buyers backing out for a reason not provided for in the contract. The purchase contract must include the sellers’ responsibilities such as passing clear title, maintaining the property in its present condition until closing, and making any agreed upon repairs to the property.
There are two standard contingencies: a financing contingency, which makes the purchase conditional on the buyer’s ability to obtain a loan commitment from a lender, and an inspection contingency, which allows the buyers to have professionals inspect the property to their satisfaction. A deposit could be forfeited by the buyers under certain circumstances, such as the buyers backing out for a reason not provided for in the contract. The purchase contract must include the seller’s responsibilities such as passing clear title, maintaining the property in its present condition until closing, and making any agreed upon repairs to the property.
