Boston Property Management: Contingency Clauses
Sometimes it helps to have a contingency clause before you buy a home, as it is great insurance. It doesn’t matter if you have spent a lot of time finding the perfect home and making an offer as something or the other can cause you to change your mind. In the event that something happens, a contingency clause will allow you to back out of the contract without losing any money.
When you set out to buy a home there are already some key contingency clauses which protect you against bigger things. However they can be some contingencies which can be quite unexpected. So you need to consider all your options before you sign on the dotted line.
Some contingency clauses are commonly used when making an offer. Some examples:
Home inspection: This is the most common one as it allows the buyer to order a professional home inspection and back out if there is major unreported damage. Fortunately this one is quite a life saver and allows you to void the deal.
Appraisal: With this contingency, The buyer won’t be obligated to buy the home if the appraisal value is lower than the asking price.
Mortgage availability: In the event that the buyer can’t find financing for his home, either party can cancel the deal.
Boston Property Management: Atypical contingencies
This is where you can apply your own additional clauses to the agreement.
HOA rules: In the event that you are looking for a home with a homeowners association, then you need a copy of the HOA guidelines before you choose to buy. This is important as everyone has their own fees and it could add to your annual homeowner costs. So this is why it’s a good idea to check everything out. It is also good to have this option as you can back out if required.
Selling your current home: This contingency should be in place if you want to sell your home before you buy another one. The provision here allows you to cancel your offer, if you are unable to sell your current home within the time frame.
Adding contingency clauses
Do remember that all basic offers do not contain any contingency clauses. So you have to include them with the help of your agent, before you make an offer. Another thing to remember is that the seller can also come up with their own contingency clauses.
We hope you liked our guide “Boston Property Management: Contingency Clauses”.