What Are Contingencies?

YouTube channel: Callcristobal

It is where a buyer has made an offer on a home, and the seller has accepted it, but the finalized sale is contingent upon specific criteria being met. These criteria, or contingencies, typically fall under four major categories: appraisal, loan approval, inspections and, reports and disclosures. The buyer has the time to do their due diligence in all of these areas.

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In regards to inspections, in our area, the typical inspections are home inspection, roof and chimney inspection, termite inspection, and if your home has septic or well expect for inspections to be done on those as well. Depending on where you live, the buyer may want to have other inspections like mold, HVAC, soil, etc. It depends on what is customary due to problems or issues that typically arise in the area.

In regards to reports, those encompass full disclosure on both inside and outside of anything and everything to do with the home. Watch the disclosure video to see what you should disclose. In regards to reports, there are also title and escrow reports, State and local reports, and disclosures that the buyer has time to review during the contingency time frames. The contingency time frames are agreed upon in the initial contract and, in most cases, are around 7-17 days.

Read: Recession

Still, in some cases, you can have a “no contingencies” if the buyer wrote an aggressive offer. In California, once you remove your contingencies, your deposit is at risk, so be sure not to remove them until you know you’re o.k. With all of the aspects of the home. You can ask for an extension if you need more time, and the seller would have to agree. The good news is that once all contingencies are removed, you have much more assurance that the home will close. 

Questions? #CallCristobal now!

Author: IntegrityRealEstateGroup

Multicultural and bilingual, Cristobal brings a unique outlook as a resource to the San Diego County Real Estate Market. Cristobal is passionate about educating & providing options people don’t know they have. Cristobal is dedicated to integrity and professionalism from beginning to end with the primary goal to assist, educate and add value in any way that he can. Cristobal embodies perseverance, tenacity, discipline, systems and negotiation skills. He enjoys helping individuals and families needing to buy a home or sell a property. Cristobal’s upbringing and training are responsible for the discipline, attention to detail and follow-through he brings to his work. He has earned a Bachelor’s degree in Electronics Systems Engineering. His professional experience includes problem-solving as a senior consultant for translational enterprises. Moving to San Diego county area, Cristobal knew that it was time for him to pursue his lifelong dream and join the real estate industry. Cristobal is able to exercise his superior observational and organizational skills while completing every transaction with sensitivity to his clients’ needs and goals. Cristobal’s mantra, how you do anything is how you do everything, he strongly believes is the key to long-term relationships

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