Selling your house can be a complex and time-consuming process. There are a lot of important details to take care of, and one of the most important is handling contingencies.
A contingency is a condition or clause in a contract that must be met for the contract to be valid. In the context of selling a house, there are typically three main types of contingencies that are included in the contract: financing, inspections, and appraisals.
As the seller, it is important to be aware of these contingencies and what they mean for the sale of your house. In this article, we will provide an overview of each type of contingency and offer some tips on how to handle them.
- Financing Contingencies
A financing contingency is a clause that states that the buyer’s purchase of the property is contingent upon them securing financing. This means that if the buyer is unable to obtain financing within a certain timeframe, they can back out of the contract and receive a full refund of their earnest money deposit. As the seller, you should be aware of this contingency and the timeline that is included in the contract. If the buyer is unable to obtain financing within the specified timeframe, you will be able to keep their earnest money deposit and put the house back on the market.
- Inspection Contingencies
An inspection contingency is a clause that states that the buyer’s purchase of the property is contingent upon a satisfactory home inspection. This means that the buyer has the right to hire a professional inspector to evaluate the condition of the property. If the inspection reveals any major problems with the property, the buyer may be able to back out of the contract and receive a full refund of their earnest money deposit. For more detail, click here https://www.eazyhousesale.com/sell-my-house-fast-torrance/.
- Appraisal Contingencies
An appraisal contingency is a clause that states that the buyer’s purchase of the property is contingent upon the property appraising for a certain value. This means that the buyer has the right to hire a professional appraiser to evaluate the value of the property. If the appraisal comes in below the contract price, the buyer may be able to back out of the contract and receive a full refund of their earnest money deposit.
