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What Are Contingencies in Real Estate?

what are contingencies in real estate - buy a home for sale in Port Aransas TX
Contingencies are part of many real estate transactions, and chances are pretty good that you’ve heard the term before.
But what are contingencies, and what do you do if they’re included in your real estate purchase contract?

What Are Contingencies?

Contingencies are conditions that must be met in order for you and the other party (or parties) to execute the real estate purchase contract. The final sale is contingent upon one or more parties to the transaction meeting certain criteria.
Typically, contingencies in a real estate purchase contract fall into at least one of three categories: appraisal, home inspection, or mortgage approval.

Appraisal Contingencies

Most lenders require you to have a home appraised before they’ll lend you the money to buy it. When there’s an appraisal contingency in your contract, you can get out of buying the home if the appraisal comes back lower than what you intend to pay for the home.

Home Inspection Contingencies

You have the right to have a home you intend to buy inspected by a professional home inspector. If the inspector finds something wrong with the home, you can ask the seller to fix it or you can back out of the deal, no harm done.

Mortgage Contingencies

A mortgage contingency protects you and the seller from entering into a contract when you don’t have the money to purchase the home. (That’s another reason that it’s a good idea to get a mortgage preapproval before you even begin house-shopping.)

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
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Filed under: Blog, Buying by Julie Woodward
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What is a Real Estate Purchase Contract?

What is a Real Estate Purchase Contract - Port Aransas Homes for Sale
When you buy a home, it all starts with a real estate purchase contract.
But what is this document, and what does it include?

What is a Real Estate Purchase Contract?

A real estate purchase contract is a legally binding, bilateral agreement between two or more parties. If you sign one, you’re saying that you have the legal capacity to make the purchase, exchange, or conveyance of “real property.” The term real property in this sense refers to land, a home, and buildings or other fixtures that you intend to buy.

What’s in a Real Estate Purchase Contract?

Your real estate purchase contract should contain:

  • Identification of everyone involved in the transaction
  • A description of the property
  • The agreed-upon purchase price
  • Details, rights, and obligations of the contract
  • Contingencies (conditions) that must be met before you can execute the contract
  • A description of the property’s condition
  • A list of what’s included with the property—and what’s not
  • How much money you’ll put down as a deposit
  • Who pays closing costs
  • How much the closing costs will be
  • A projected closing date
  • Each party’s signature

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

Filed under: Blog, Buying by Julie Woodward
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