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What Is a Real Estate Contingency?

– Have you ever heard a realtor use the word real estate contingency? Are all contingencies the same and how do they affect the buyer or the seller? Hi, I’m Sam Gorniak with Homes by Sam and Tanya and Sanivia.com. A real estate contingency is where a buyer has made an offer on a home and the seller has accepted that offer, but the finalized sale is contingent upon certain criteria being met. This criteria, or contingencies, typically fall under four major categories. Number one, appraisal, number two, loan application, number three, inspections, and number four, reports and disclosures. The buyer has the time to do their due diligence in all of these areas. In regard to inspections, in our area, the typical inspections are home inspections, roofing inspections, chimney inspections, WDOs and/or termite inspections. And if your home has a septic or well, expect for inspections to be done on those. Depending on where you live, the buyer may want to have other inspections done, like mold, HVAC, soil, et cetera. It depends what is customary due to problems, or issues, that typically arise in the area. In regards to reports, those encompass full disclosures on both inside and outside, or anything and everything to do with the home. Watch my disclosure video, or text me, at 904-687-9274, to see what you should disclose in regards to reports. There are also title and escrow reports that the buyer has time to review during the contingency timeframes. The real estate contingency timeframes are agreed upon in the initial contract and in most cases, are around 10 to 45 days, but in some cases, you can have no contingencies if the buyer wrote a really aggressive offer. In Florida, once you remove your contingencies, your deposit is at risk, so be sure not to remove them until you are aware that everything is okay with all aspects of the home. You can also ask for an extension if you need more time and the seller would have to agree. The goods news is, that once all contingencies are removed, you have a much more assurance that the home will close. Once again, I’m Sam Gorniak with Home by Sam and Tanya and we are simplifying real estate.

 

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