Are you wondering what the most common contingencies in real estate are? If so, you are in luck because Riva Title Company has this article for you to learn all about the topic. If you are interested, keep reading!
A contingency is a condition or provision that appears in almost every real estate contract that causes the agreement to be null in case of specific circumstances occurring. Both the seller and the buyer can suggest their own conditions, as this is part of the bargaining process. There are a great number of provisions that both parties can agree on, but there are certain provisions that are included in every real estate contract. Learn about some of the most common contingencies in this article by Riva Title Company in South Miami, FL.
A contingency is a condition or provision that appears in almost every real estate contract that causes the agreement to be null in case of specific circumstances occurring. Both the seller and the buyer can suggest their own conditions, as this is part of the bargaining process. There are a great number of provisions that both parties can agree on, but there are certain provisions that are included in every real estate contract. Learn about some of the most common contingencies in this article by Riva Title Company in South Miami, FL.
Appraisal Contingency
In every home selling process, there is always a home appraisal. In this contingency clause, it is stated that the property should be sold at the appraisal price. Should the appraisal come in lower than the previously stated price, there will be a negotiation needed in which the seller will have to decide whether they lower the price and make up the difference. In the case of the seller deciding otherwise, the appraisal contingency will play a role and make the contract void.Home Inspection Contingency
This is a very important contingency in the contract as it protects the buyer and ensures they are getting a fair deal and a property in perfect shape and state. There is a period allowed (usually 3 to 14 days) in which the investor conducts inspections to the property as well as walk-throughs to ensure the property is in good shape. This also allows for an outline to be made on the repairs and future problems that may be encountered with the property. In a home inspection, different parts of the property are reviewed, including the electrical system, the foundation and basements, the condition of the roof, the soil stability, pest and termites, the water system and plumbing, and more.If you are planning on investing in a new property, it's essential to keep contingencies in mind along the process. Protect your property by getting in contact with Riva Title Company in South Miami and learning about the benefits of title insurance. For more information, call 786-787-7888.
Home Insurance Contingency
This is a contingency in which sellers and lenders require the buyer to obtain or apply for homeowner’s insurance to be able to obtain their new property. This helps ensure the property is protected in case of any water and fire damage, as well as other issues. In some regions, obtaining insurance for a property may be harder than in others, which can become an issue. The home insurance contingency gives the buyer the option to back out of the deal in the event of them not being able to obtain the insurance before the closing date.Title Contingency
This is a very important and crucial contingency to add in a real estate contract. When purchasing a new property, a title company or real estate attorney will do a title search on the property to look at the homeownership record and ensure everything is in order. This protects both the seller and the buyer, as it ensures the property is free of issues and gives the buyer the security that their new property is free of title problems. If problems were to arise during the title search, such as there being a lien that needs to pay before the sale or legal problems, the title contingency gives buyers the opportunity to make the contract void if there are unresolved issues before the closing.To ensure you get the best title insurance as well as the assistance you need when choosing to invest in a property, contact Riva Title Company in South Miami by calling 786-787-7888.
Mortgage Contingency
In this case, the contract will state that the transaction can only be completed if the buyer's mortgage is approved before the closing. The mortgage should be approved in the same terms and with the same down payment percentage as stated in the contract and approved by the lender. In most cases, the mortgage is approved and the deal goes on without major issues, but otherwise, if the buyer is offered a different deal by the mortgage giver, the terms will change. If any issue were to arise, and the stated terms are not met, the contract will no longer be binging and will become void.Satisfactory Walk-Trough
Often, there is a clause that is agreed upon in which the transaction will only be completed after a final walk-through of the property to ensure the property has not suffered any damage. The walk-through usually happens on the day before the closing and, if any problems are encountered, the contract can become void, or there can be a negotiation to get any fixings done before closing on the property.To ensure the property you are planning on investing is in perfect condition, contact an expert at Riva Title Company in South Miami, FL. Get the best title insurance assistance by speaking with an expert by calling 786-787-7888 today!
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