Contingencies, contingencies, contingencies! What are they? Contingency is defined as: a future event or circumstance which is possible but cannot be predicted with certainty. In real estate they are embedded into every contract and are used to protect you in a few specific circumstances. In residential contracts, contingencies are most commonly used to protect a buyers right to cancel the sale while keeping your deposit. In the middle of every escrow there will be (or should be if your agent knows what they're doing) a time where you either ask, or are asked, to remove your contingencies. For example, when you release your inspection/due diligence contingency, you are saying that you are comfortable with the condition of the home, and wish to move forward with the sale. The same goes for the release of your loan and appraisal contingency. If you would like to find out more about contingencies and thier place in real estate, give me a ring!
