In real estate transactions, it’s vital that all parties involved are protected legally. Contingencies are used as an extra layer of protection to make sure both buyers and sellers get the most out of the home buying and selling process. However, some clauses benefit one party, while potentially damaging the other.
In the world of real estate, contingent means “something depending on specific circumstances. So if a home seller accepts a contingent offer, this means the deal is almost done but won’t be complete until certain standards are met.
During the home selling process, it’s best to proceed with caution in regards to contingent offers. A standard home sale may include a home inspection contingency, giving the buyer the freedom to walk away from the home if the home inspection doesn’t come back satisfactory. This may also include forfeiting earnest money from the buyer if the sale falls through.
However, it’s vital to examine the purchase contract for all home sale contingencies, especially ones that are not standard. For example, some buyers may add a contingency clause saying the purchase of a property won’t proceed until they can sell the home they currently own.
This can greatly slow down the home selling process and waste time on the side of the home seller.
On average, around 5 percent of contingent offers in real estate fall through. However, this number doesn’t capture the cases that continued but with extra difficulty due to extra clauses in the purchase contract.
Whether there’s a mortgage contingency, home sale contingency, appraisal contingency or any other clauses, it’s vital to comb through the purchase agreement with your real estate agent for optimal results.
Originally from upstate New York, I moved to Park City soon after college to spread my wings and explore the western United States, taking full advantage of the world class golf courses, beautiful mountains and the greatest snow on earth. 20 years later I am grateful to still call Park City home.
Client experience is my #1 objective. I have a passion for helping people realize their perfect Park City experience. My 22 years of resort management provided me with tremendous opportunity to work with so many different people from all over the world, delivering the services and experiences they desired and facilitating them to take advantage of all Park City has to offer.
Having played, worked and raised three children in Park City, my knowledge runs deep of the community and its surrounding areas, and all they have to offer. I am confident I can help you to find your next dream home in this wonderful community.
