In the economic environment of the 21st century, buying a home for your family is riskier than ever. The typical home buyer in Russell, Kentucky, cannot afford any mistakes on either side of a real estate contract.
Of course, selling property also poses some risks. Home sellers often include contract contingencies to minimize these risks. Homebuyers are also permitted to add contingencies to the contract. In most situations, it is wise to take advantage of this right.
What are real estate contingencies?
In real estate law, contract contingencies are common. They essentially offer a way for either party to withdraw (with your deposit!) from the deal when specified conditions go unmet. In other words, the transaction is contingent upon the meeting of certain conditions outlined in the contract.
Four examples of beneficial buyer contingencies:
- Finance terms: A condition in which the purchase only proceeds if you get the kind of financing and interest rate that meets your budget.
- Home inspections: A condition that allows you to withdraw from the purchase if the home inspection reveals substantial flaws or defects in the property.
- Seller assist: A condition that the home seller will cover or share some of the closing costs associated with the real estate transaction.
- Home contents: A condition that the person selling the property leaves behind specified items like kitchen appliances and fixtures.
Since the seller can also include contingencies, having a legal advocate review the terms of your purchase agreement can protect your best interests. It is also wise to increase your understanding of Kentucky real estate law. Such knowledge can substantially minimize your risk when buying residential or commercial real property.