Types of Contract Contingencies

Before writing an offer to purchase, for your own protection, make sure the offer contains contract contingencies. Be aware that sellers can ask for contingencies, too.

It's the contingencies in the contract that will let buyers cancel and regain control of their earnest money deposits. The language of the contingency should explain how it will be satisfied or removed. In California, for example, the standard C.A.R. contracts allow 17 days for contingencies, at which point the buyer is expected to sign a release of all contingencies.

But contingencies can be almost anything. If the buyer wants to put a pool into the back yard, the buyer can make that stipulation a contingency. Then the buyer can use the contingency period to check with the city permit department, get contractor estimates and look at the title policy to see if an easement would prohibit placement of a pool where the buyer wants it . . . read more about Contract Contingencies.

More Articles by Elizabeth Weintraub, click below:

• Contingent on Selling the Buyer's Home
  
• Contingent on Sellers Finding a Home to Buy
  
• Home Inspection Contingencies

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