Скачать или смотреть What are contingencies?

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Contingencies are a part of a purchase agreement that allows the buyer to make sure that a few things are in place before they decide to actually close on a home. There's a few big ones. They are loan contingency, appraisal contingency and inspection contingency.

A loan contingency means as the buyer you're saying that I want to buy this house but it's contingent on me getting a loan. Often times buyers will waive this contingency if they are fully pre-approved already by their bank.

An appraisal contingency means that the purchase is subject to the house being appraised at the value that the buyer and seller have agreed to. So let's say you and the seller agree that the purchase price is $1 million. Well if it appraises for $900,000 then you as the buyer could try to renegotiate or back out.

And inspection contingency means that you as the buyer have the right to have the home inspected before you sign off on it. And that means really anything. This is the get out of jail free card where if you were to wake up in the middle of the night and change your mind you could still back out and get your deposit back.

The idea is these contingencies are removed as the purchase moves along. So they have dates on them. Often times a loan or appraisal contingency will be about two weeks and an inspection contingency may be a little bit less than that.