Related topics
- - Removing the Financing Contingency
- - Removing the Appraisal Contingency
- - Removing the Home Inspection Contingency
- - Removing Other Contingencies
Your purchase agreement contains a number of contingencies - conditions that you or the seller must meet before the sale can happen. Some contingencies, such as the financing and home inspection contingencies, protect you if a serious problem arises that prevents you from buying the house. Others protect the seller, like a contingency that limits how much the seller will pay for repairs.
When you're satisfied that a contingency has been met, you remove that contingency from the purchase agreement. For example, when your lender sends you a commitment letter approving your loan, it's time to remove the financing contingency. The seller also removes his contingencies as they're met. Although you can remove a contingency with a phone call to your real estate agent or lawyer, it's a good idea to do it in writing. That way, if problems arise later, you can prove when the contingency was met. Any contingencies either you or the seller doesn't release can become grounds for canceling the contract. For example, if your home inspection reveals problems with the home's structure, you can open a new round of negotiations with the seller to deal with those problems - or you can walk away from the sale because the house didn't meet the home inspection contingency.
