What is a Contingency on a Contract?

What are contingencies on real estate contracts and how do you deal with them? What do they mean? What are the course of actions that I would need to take as a buyer? As a seller? 

There are many contingencies built into real estate contracts. They are there to protect the buyer and sellers, and to ensure that certain criteria is met prior to finalizing or closing on a property. Depending on the type of contract, whether you are the buyer or the seller, the contingency has slightly different look and feel, but in the end the condition needs to be met to the satisfaction of all parties (sellers, buyers,lenders) for the contingency to be met and released.

So what is the risk of not meeting the contingency? As a buyer, your Earnest Money Deposit (EMD) is at risk, as the seller can put a claim on the funds due to the buyer missing deadlines and not meeting the contingencies on a timely basis. As a buyer, as long as you meet the timelines, communicate with the seller, and follow protocol if you need to ask for a Release & Cancellation of Contract, you can claim your EMD and get it returned to you. It is incumbent on your Real Estate Agent to manage and educate you, on a timely basis, on the conditions, actions, and timelines. We are the Real Estate Pros for a reason!! We guide you through the process and make sure we take care of you, protect you and communicate with you, buyer and or seller.

Some of the most common contingencies in contracts are spelled out below. 

There are other contingencies that are important. Ask your Real Estate Pros Agent about contracts and contingencies, and what we do to help  and guide you. Ask them to explain them, and we will educate you.

Have a great day and stay safe and healthy. Take care of yourselves and others.

Call 407-381-7861 or email Info@RealEstateProsFL.com for more information.

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