Ask the Realtor: In a sales contract, what does the term “contingency” mean?

Sales contracts typically contain several “contingency” clauses, or conditions on which the sale is dependant. For example, with a mortgage contingency, if the buyer is not able to obtain financing within the specified timeframe, neither the buyer nor the seller is required to complete the purchase. Other common contingency clauses are related to inspection issues (a general inspection, pest inspection, radon testing) or to the buyer’s need to sell a current home first. Weichert agents, like those with WEICHERT, REALTORS® — New Colony, are trained to clearly explain these types of contingencies to you.

What happens if a home inspection reveals a serious problem?

Generally, if any of the inspections or tests reveal a serious problem, the buyer who has a properly drafted contract can get out of the contract. What usually happens, however, is that the cost of fixing the problem becomes an issue of negotiation between the buyer and seller. This is where having a full-time professional Realtor® is critical in resolving the issue and keeping the purchase moving forward. A Weichert Realtor® has the skills to negotiate on the client’s behalf. One solution, for example, may be to have the seller cover the complete cost; or the buyer and the seller may split the cost. There is also the option of reducing the sales price, or increasing closing-cost assistance by the seller. This is a conversation that we are prepared to have, so that you feel confident in the final solution.

Contact us: 410-381-3331

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