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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 will probably 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 will probably allow the buyer a reasonable period of
time to arrange for required inspections. The exact inspections necessary
may vary with area, but typically include general home inspection,
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 included separately - for example, when
a buyer does not need mortgage but wants an 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 will probably 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. Be very careful with this type of contingency. |
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Special
contingencies.
Some transactions require special conditions. For example, if the
home needs a lot of work the buyer may want a contingency period to
get pricing from contractors. |
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