Monday, August 10, 2015

What are home inspection contingencies?

Q.  We are in the process of purchasing a home in Aventura Hamptons South.

Our Aventura Real Estate Agent has mentioned, on several occasions the seller is offering us several contingencies. These contingencies will be noted in our sales contract in the form of Home Inspections Contingencies.

Can you kindly explain what is a Home Inspection Contingency?

A. A contingency is an additional amendment/change to the legal sales contract. These changes must be agreed upon by both parties involved in the purchase/sale. In real estate, contracts with contingencies are quite common.

These are additional clauses in a sales contract that give either the buyer or the seller a legal exit strategy if certain commitments or obligations in the contract are not met.

Home inspections are probably the most common type of contingency added to a sales contract. These amendments to the contract are made prior to the execution of the home inspection and normally are based on satisfactory completion of this process.

Traditional types of home inspections would include inspections by a licensed home inspector for any hidden defects and faults with the home, mold inspections, seawall inspections, pest inspections and are also part of a home inspection. 

Home inspection contingencies can apply to single family homes, condominiums, townhomes and villas. 

Also, they can apply to primary residences and investment properties. 

Every contract can be unique. The possibilities for contingencies are virtually endless.  

Other types of contingencies can include financing and the sale of an existing home, meaning the buyer is placing a contract for sale based on the sale of their current home. In some instances, continuities are based on acquiring home insurances.

It is important to note, that all contingencies are negotiable. It is important to find an Aventura Realtor with these invaluable skills.

Best wishes in 

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