"Contingencies are an important part of the homebuying process, giving buyers a safety net during the transaction. They are conditions written into the purchase agreement that must be satisfied for the sale to move forward, allowing either party to back out without penalty if specific terms aren't met. Although not required, contingencies are standard in most real estate contracts, and some are especially important depending on the location."
"For example, in wildfire-prone areas like Los Angeles , including a homeowners insurance contingency can ensure the property is insurable before you commit. This real estate article explains how contingencies work, which ones to expect, and how they can help you avoid costly surprises during the homebuying process. What are contingencies in real estate? Contingencies act as a safety net. They protect buyers by allowing them to renegotiate or walk away without losing their earnest money deposit if a critical condition isn't met."
Contingencies are contractual conditions that must be satisfied for a home sale to proceed, providing buyers a safety net to renegotiate or exit without losing earnest money. Contingencies are common in most contracts and can be tailored to location-specific risks, such as homeowners insurance in wildfire-prone areas. Typical contingencies include inspections, appraisals, and financing, each with a defined contingency period and deadline. An inspection contingency gives buyers a set time to review the property, request repairs, or cancel. Contingent offers remain active but incomplete until all conditions are met and due diligence is finished.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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