The role of contingencies in a residential purchase agreement
Most Missouri parents have attached contingencies to permitting their children to do what they want. For example, a parent may allow a child to watch cartoons if the child first makes their bed and washes the dishes. Contingencies exist in the workforce, too. A prospective employee may get a job offer that is contingent upon that person passing a background check or other assessment.
A contingency is a condition that must be satisfied before a secondary event may occur. They can play a big role in whether a person is able to purchase a home, and there are different types of contingencies that individuals may see in their residential real estate purchase agreements.
One of the most common forms of contingencies that exist in real estate contracts is related to financing. A person may be allowed to buy a home contingent upon their ability to secure a mortgage for the purchase of the property. Although some individuals can pay cash for real property, most people need to finance their homes through mortgage loans.
Another common contingency that may appear in a real estate contract relates to inspections. These contingencies are designed to protect buyers from purchasing real estate containing hidden damage or problems, such as faulty wiring or crumbling foundations. If an inspection reveals problems with a home, a buyer may be able to get out of their purchase contract due to this contingency.
Given all this, it can help prospective home buyers to work with a trusted real estate attorney when they are working through the details of their purchase agreements. Attorneys who work in this field can offer their clients a wealth of knowledge on how their contract contingencies may affect their plans to purchase new homes.