Contingencies

In residential real estate, there are several types of contingencies that can be included in a purchase contract. Here are some of the most common types:

Inspection contingency: This allows the buyer to have the property inspected by a professional inspector. If the inspection reveals any problems, the buyer can request repairs, ask for a credit, or even cancel the contract.

Financing contingency: This contingency allows the buyer to back out of the contract if they are unable to obtain financing for the property.

Appraisal contingency: This contingency allows the buyer to back out of the contract if the property does not appraise for the purchase price.

Home sale contingency: This contingency allows the buyer to back out of the contract if they are unable to sell their current home within a specified period.

Title contingency: This contingency allows the buyer to back out of the contract if there are any issues with the title, such as liens or ownership disputes.

Homeowner association (HOA) contingency: This contingency allows the buyer to review the HOA documents and rules and back out of the contract if they are not satisfied with the HOA regulations.

It’s important to note that contingencies can vary by state and local laws, and a real estate agent or attorney can provide more detailed information on the types of contingencies available in a specific area.