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Contingencies and Clauses

Contingencies can make a contract voidable.

Contingency

A condition in a contract that requires completion of something before the contract will be binding.

 

Appraisal

An appraisal contingency protects the buyer and is used to ensure a property is valued at a minimum, specified amount.

As Is

Accepting the property in it’s As Is condition.  Disclosure still must be made.

Home Sale Contingency

I’ll buy your house if I can sell my house.

Acceptable Financing

I will buy your house if I can get the right loan that is affordable.

Inspection

I will buy your house if the property inspection is good.

Repairs

Ensure the property is repaired before closing.

Warranties

Possession dates

Clear Title

 

Amendment

a minor change in a document.

Addenda

literally “something added,” from Latin addendum

 
 
 

Time is of the essence.

A contract clause requiring adherence to contract deadlines.

 
 
 

Right of First Refusal

On a contingent offer from a buyer, the agent has not earned his commission until the contingency is removed. An example would be a buyer making an offer based on him securing financing.