Contingencies are the escape clauses in a real estate contract. You agree to buy the property if specific conditions are met. These are some of the contingencies you need to consider when shopping for Toledo real estate:
- Sale of home contingency: Selling your home may not be as easy as you hoped. If you cannot sell it, you may need to cancel buying a new one.
- Mortgage contingency: Most people need finance to fund a purchase. If you cannot get a mortgage, or the rates change from those given in a pre-loan agreement, this contingency allows you to back out.
- Homeowner insurance contingency: If for any reason, you cannot get homeowner insurance on the property, you will probably need to walk away. You are unlikely to get a mortgage without it.
- Title contingency: You do not want to buy a property that does not have a clean title. If there are issues that the seller cannot resolve, it could lead to problems.
- Inspection contingency: A house may look fine, but you need an expert’s opinion to ensure it is. If they find damage or issues, then you can either walk away or renegotiate the price if you have this clause in place.
- Final walk-through contingency: This allows you one last check to make sure the property has not suffered any damage since you last saw it.
If you fail to include contingencies when purchasing real estate and need to back out, the seller could sue you for breach of contract. A Toledo real estate attorney can help you include them when you sign a deal to buy a home.