November 29, 2020

Your escape hatch when buying or selling a home

When you’re working on a computer, the undo button is an invaluable tool. So is a contingency clause when you’re looking to buy or sell a home. It provides a way for one or both parties to back out of a real estate contract if certain specified conditions are not met.

Common contingencies in real estate sales include an appraisal contingency, inspection contingency, and a funding contingency. Most contingency clauses are designed to protect the buyer’s interests, although including too many contingencies in a contract could make you appear less appealing to the seller, especially when multiple offers are involved.

It’s important to understand how contingencies work and to collaborate closely with your real estate agent and attorney on which contingencies to include and agree to. Find out what's involved by reading my article on this topic for, available here.