When it comes to real estate, it is important that you are working with a trusted agent who can help you with the right contract for the sale. The paperwork can seem tedious and long, but there are important reasons why certain things are included in the contract. One thing that might be included is a sale contingency.
What is a Sale Contingency?
This contingency is used to help you stay protected to mitigate for financial risks that might occur in the future. It is important to consider all worst-case scenarios, and the contingency might help in case a bad economic situation happens.
This type of contingency can be added into an offer or a real estate contract. When it is placed in the contract, then it means that the transaction will only happen if specific requirements are met. There are different types of contingencies, and an experienced real estate agent will be able to help you choose the right type for your needs.
Benefits of a Home Sale Contingency
If you are buying a home, then there are benefits to using a home sale contingency in your contract. The most common reason for this clause is to ensure that you can sell your current home so that you can buy a new home. For example, if your home sells by a certain day, then the deal to purchase the new home will go through. But, if your current home doesn’t sell, then it is possible to back out of the purchase of the new home.
Other Types of Real Estate Contingencies
There are other types of contingencies that might be included in the contract, such as a settlement, appraisal, home inspection, or mortgage approval contingency. Some of these contingencies are designed to protect the buyer, allowing them to withdraw their offer if undesirable information is discovered about the property during the inspection or appraisal process. If the contingency is used in the right way, then it means that the buyer will have the opportunity to withdraw the offer without the risk of losing their deposit.
It is very important that you have a home inspection contingency in your contract, because this clause will protect you if major repair work is needed. When problems are discovered, then the buyer can request the seller to fix the problem. Or, they might choose to back out of the sale.
Understanding real estate contracts can be confusing, which is why you need to have an experienced real estate agent by your side. At Duffy Realty of Atlanta, we have many years of experience in the Atlanta real estate industry. Our team can help with every step of the process to buy or sell a home. We will ensure that the right sale contingencies are placed within the contract to keep you protected during every part of the real estate process: (678) 318-1700