SellingAHome-JenniferChristenot (1)

with the home, and those problems can make it impossible for
the buyer to purchase the home. For this reason, contingency
clauses are put into place that provide the buyer with an “out”
should they need it later on.
The two contingency clauses that are more common than any
others are the appraisal contingency (17 days), and the loan
contingency (21 days).
The appraisal and inspection contingency is included in the
offer to purchase because the inspection will not yet have been
performed upon time of submitting the offer. If it’s found after
the inspection is completed that there are major issues with
the home or a lot of repairs that are needed, the buyers can
point to the inspection clause and retract their offer.
Loan contingencies are written into offers to purchase with
nearly every single contract that’s drawn for the purchase of
any home. This is because once again, while buyers might
have an idea of how much they can afford and may even have
pre-approvals, they won’t actually have the financing firmed
up and in place. There are also many things that can happen
during the financing process that can cause the financing to
fall through for the buyer and make purchasing the home
impossible. The loan contingency keeps the buyer from being
legally and contractually bound to buy the home when there’s
simply no way they can do so.
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SELLING A HOME FAQ’S AND SAQ’S | JENNIFER CHRISTENOT