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Attorney
Review.
Every home purchase contract should be expressly contingent upon review
and approval by an attorney.
Many states provide for an automatic review period regardless of the
specifics of the contract. |
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Financing.
The contract should be contingent upon the purchaser obtaining a mortgage
commitment within a set period of time. The contract generally stipulates
that the loan should be at "market" rates and terms - so the buyer
can't be compelled to accept an unfair loan if that is all that is
available. |
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Inspections.
The contract should allow the buyer a reasonable period of time to
arrange for required inspections. The exact inspections necessary
may vary with area, but typically include a general home
inspection (always!), termite/pest inspection, and a radon test. |
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Appraisal.
This is partially covered with a financing contingency - since the
buyer will not obtain a mortgage if the property fails to appraise.
Nevertheless, it is sometimes worth including a separate contingency
- if, for example, the buyer does not require a mortgage but wants
the appraisal anyway. |
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Repairs
and cleanup.
If the purchaser's willingness to buy is based upon certain action
by the seller - making a repair or removing excessive garbage
or debris, for example - the contract should contain an express
contingency to that effect. |
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Sale
of buyer's home.
Some contracts are contingent upon the sale of the buyer's home to
another party. While it is often difficult to get a seller to accept
this type of condition, a buyer who cannot otherwise afford to proceed
has little choice but to try. |
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Special
contingencies.
Some transactions require special conditions. For example, if the
home needs a significant work the buyer may want a contingency period
to get pricing from contractors. |
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