Are You Wondering about Contingencies in Real Estate? This Article Is for You!

Are you wondering what real estate contingencies are? If so, read this article by Patriot Title Agency, Inc., in Canton, OH, and get familiar with the role they play in most real estate contracts.

A real estate contingency clause is a condition that both the buyer and the seller agree upon that can potentially make the contract become void. Real estate contingencies take specific situations into consideration to ensure both the seller and the buyer are protected and content with the deal. Learn more about the most common real estate contingencies by reading this artible by Patriot Title Agency, Inc.

Appraisal Contingency

Every home selling process involves a home appraisal. The appraisal contingency states that the property being sold should be sold at the price stated after the appraisal process. If the price stated after the appraisal happens to be lower than the previously stated price, there is a negotiation to be made. The seller needs to decide wether they are willing to lower the price and make up the difference. If the seller decides they don’t want to lower the price, the appraisal contingency will come into play and the contract will become void.

Home Inspection Contingency

The home inspection contingency is specially important for the buyer, as it protects them and ensures they are getting a fair deal and that the property they are acquiring is in perfect condition. The investor needs to conduct an inspection on the property within an allow period of time (usually 3 to 14 days) to ensure the property is in good condition and that there aren’t any issues to be resolved. In case of any problem being met, there is time given in order for the issues to be resolved before closing day. Home inspections take different aspects into consideration including reviewing the electrical system, the basement and foundation of the house, the soil stability, the water system, and so on.

To ensure your new property is properly insured, get in contact with the experts at Patriot Title Acency, Inc., in Canton, OH. Learn about their services and about the benefits of title insurance by calling 330-479-3000.

Home Insurance Contingency

In home selling processes, buyers are required to apply for a homeowner’s insurance. The home insurance contingency states that this requirement needs to be met in order for the buyer to be able to obtain their new property. Home insurances ensure the property is protected in case of any unsuspected problems like fire damage, water damage, and so on. In case of being unable to obtain the home insurance before the closing date, the home insurance contingency clause states that the buyer can back out, making the contract void.

Title Contingency

The title contingency is one of the most important parts of any real estate contract. Along the process of obtaining a new property, a real estate attorney or a title company will do a title search on the property and look for any inconsistencies. They ensure there isn’t any issue in the homeownership record, which protects both the seller and the buyer as it guarantees the property is free of any liens as well as other issues involving the title. If any issues were to arise, the title contingency gives the buyer the opportunity to back out and make the contract void before the closing date.

To get the best title insurance services, make sure to speak with a professional at Patriot Title Acency, Inc., in Canton, OH. For information on all their services, don't hesitate to call 330-479-3000 today!

Satisfactory Walk-Through

In many cases, the buyer and the seller agree upon the satisfactory walk-through contingency clause. This clause states that the transaction will only be completed after a final walk-through of the property where the buyer ensures the property hasn’t suffered any damage. The final walk-through usually takes place the day before the closing date. If any issues were to arise, the contract can become void or there can be a negotiation in which the seller commits to fixing any problem before closing on the property.

Sale of Another Home Contingency

There are cases in which the buyer is only able to buy the new property after ensuring their previous home is sold and they get the funds from that specific sale. In these cases, the seller agrees on a sale of another home contingency in which they agree on waiting on the buyer to sell their previous property. A time frame is stated, and if it were to happen than the buyer isn’t able to provide the funds, the contract becomes void. In some cases, a negotiation can be made, but most of the time, the seller goes on to take another deal.

If You Are Planning on Obtaining a New Home, Make Sure Your Property Is Protected with Title Insurance

To ensure you are able to enjoy your new home at its fullest, make sure you get in contact with a professional at Patriot Title Agency, Inc,. in Canton, OH. Learn about all their services and about the benefits of title insurance. For more information, call 330-479-3000.