Contingencies can be a tricky thing to navigate in an offer, especially if they aren’t revealed up front. There are a few key things you need to watch out for.
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Recently, sale and closing contingencies are becoming very popular again. A lot of people are afraid to buy before they sell, or vice versa.
Unfortunately, some people may not alert you to a contingency within a contract. Whether you’re a buyer or a seller, be sure to read things over carefully and make sure there’s nothing hidden in the fine print that you weren’t told about.
One red flag to look out for is an offer with far-off closing dates. People who give themselves a long time to close sometimes do so because they’re hoping they can sell their home during this time, before they buy yours. If they don’t, they can wiggle out of the contract and get their deposit back by having their lender verify that their financing fell through.
Personally, I don’t think this is exactly ethical. I think contingencies should be revealed up front. Since this isn’t always the case, though, be sure to have your agent check over your contract for contingencies. Contingencies absolutely must be in writing.
The first writer refusal time frame is also important. If you, as a seller, get another offer within this time frame, the first buyer needs to make a decision about whether to put their offer in writing or not. I personally think 24 hours is plenty of time for this.
Lastly, be aware of when inspections start on a contingency offer. My preference is to have inspections completed right away after acceptance, so that the deal can be solidified sooner rather than later.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.