If you’re looking into buying real estate, you have to decide how you want to make your offer. This starts with considering your price point, of course, but there are other details that you want to consider. Each offer can be unique, and it helps to protect your investment.
One thing that people will do is use contingency clauses. Why would you use these, and what impact are they going to have?
Allowing you to walk away
The basic goal of a contingency clause is to allow you to legally walk away from your offer if that contingency isn’t met.
For example, perhaps you looked at a home, and you thought it looked like it was in great condition. You want to make an offer, and you know you need to move quickly. But you still want to have an official home inspector go through the property to see if there are any hidden issues before you take ownership.
You don’t necessarily have to wait to do this before you make your offer. You can simply say that you offer a certain amount of money for the property, but the contingency is that you only have to pay if it passes the inspection. A seller who knows their home is in good condition and will pass probably has no issue with this. But, if some problems do show up during the inspection, then you are not stuck in a contract you no longer want to honor.
Steps to take when buying property
Contingency clauses are just one of the clauses you may want to consider when buying property. Take the time to think through all the legal steps that you need to take and how to put yourself in the best possible position.