So what are contingencies?
It's when the buyer has placed an offer on a home and the seller has accepted it but the final sale is contingent upon certain criteria being met. This criteria or contingencies typically fall under four major categories; the appraisal, loan approval, inspections and reports and disclosures.
Hi, I'm Stephanie Martenzi, Supermom Superagent with Southland Properties.
The buyer has time to do their due diligence in all of these areas. In regards to inspections, in our area the typical inspections are home inspection, roof, and if you have a chimney, the buyer may want to have that looked at. Termite inspection is very common. And if your home is on a septic, well, expect to have that done as well.
The buyer may also want to have other inspections like the mold or possibly have the furnace and the AC looked at. In regards to reports, those encompass full disclosure on both the inside and the outside of anything and everything to do with your home.
In addition to reports, there are also the Title and Escrow reports, state and local reports and disclosures that the buyer has time to review during the whole contingency timeframe.
The contingency timeframes are agreed upon in the initial contract and are usually around seven to 17 days. But in some cases you can have a no-contingencies if the buyer wrote a really aggressive offer. In California, once you remove your contingencies, your deposit is at risk so be sure not to remove the contingencies until you know you're okay with all of the aspects of the home.
You can ask for an extension if you need more time but the seller has the option to agree to extend the contingencies or not. The good news is that once all contingencies are removed, you have much more assurance that the home will close.
And again, this is Stephanie Martenzi, supermom, superagent with Southland Properties, here to help you have a fun, empowered and informed real estate experience by guiding you every step of the way. If you see me out in the community, make sure to say hi
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