LOCAL RECORDS OFFICE: We all know that real estate is difficult, but what does Contingencies mean? Contingencies are mentioned a lot in the real estate world, but unless you are an agents, lenders, brokers, etc., you might not fully understand what they are and why they are important says, ‘Local Records Office’. Basically, contingencies protect a buyer should the sale experience take a turn in the wrong direction. Below are a few of the most important contingencies to be familiar with.
Local Records Office: Remember Two Things ‘Approval and Appraisal’
Although loan approval and home appraisal are two different things, they are often linked together as one big contingency because they go hand-in-hand. To get approved the bank will turn to the expertise of an appraiser to make sure the home is worth the price you are offering to pay.
Local Records Office says, “The appraiser evaluates the home and takes photos and measurements to include in their written report”. To make sure there are no outstanding clouds or liens, a title report is also requested by the lender. Note that if you are purchasing a condo or some other type of planned unit development certain finances and documents will also be requested to review by the lender.
When compared to other contingencies, loan approval generally has the longest timeline. Appraisal can often be done within a couple weeks in a competitive market, but in slower markets it can take as long as 60 days.
Local records Office: Home Inspection is Crucial
This is the one contingency you don’t want to make an offer without because you don’t want to be locked into a purchase after you find out the property has severe issues, such as black mold or an advanced termite infestation says, Local Records Office. Inspection contingency language is written in a way that gives the buyer the chance to get out and run away from the deal, if need be.
It should be noted that not all issues are grounds for canceling the deal. If a seller agrees to take care of the problem or provide a closing credit you may want to stick with the home and enter a new round or negotiations.
Local Records Office: Disclosures for an Informed Decision
Just because you love a house does not mean it is the right one for you. Sellers are generally required to discuss undesirable traits that could after your decision says, Local Records Office. For example, if they know the roof leaks in one spot every time there is a heavy downpour or they know the roots of that giant maple tree are invading the septic system these are disclosures they need to share with you.
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