what are the common contingency clauses

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blue · Posted: Mon Feb 19, 2007 12:19 pm Post subject:

Hi Terry,

Welcome to Mortgagefit discussion board.

At the time of buying a home such a contingency clause helps the buyer to cancel the contract if certain conditions are not met. Some such clauses are -

Finance: With this contingency clause buyer is allowed a specified period of time to obtain a loan commitment and financing.

Inspection: A contingency clause can be included for inspection of the property to trace any material defect or structural problems in the house. The clause can be made as such to mention who will pay for any required repairs.

Approval: Sometimes it may be required to get approval of co-op board or the condominium. The contingency clause will cover the transaction for the approval to complete.

Do let me know if you have any other questions.

Thanks
Blue

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.41 Dollars($)

Hi Terry,

Apart from the type of contingency clauses Blue mentioned there are some other clauses which are used.

One relates to survey of the property. A buyer can decide on approving the property after a boundary survey is completed. Such a survey might show whether any neighbor has encroached on the property or not.

Another contingency clause that can be included relates to the property owner getting necessary building permits. And that all building codes are complied with in case there was any recent remodeling done on the property.

David

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Few other contingency clauses can be like, getting an attorney approval where the contract will be contingent on your attorney going through and giving his approval for the title report, purchase agreement that has been made or other similar legal documents. Other contingencies can be like asbestos, earthquake, radon, flood, water and lead inspection contingencies as applicable in your region.

Sproles

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