Contingencies and Clauses
Contingencies can make a contract voidable.
A condition in a contract that requires completion of something before the contract will be binding.
An appraisal contingency protects the buyer and is used to ensure a property is valued at a minimum, specified amount.
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.
I will buy your house if I can get the right loan that is affordable.
I will buy your house if the property inspection is good.
Ensure the property is repaired before closing.
a minor change in a document.
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.