What is a contingency in real estate


What’s a contingency in real estate you
ask? Well we’re talking about that today starting right now. . . Hey everyone, welcome to my channel my
name is Ashley Jurney and I’m your local Charlottesville realtor with town
you can learn more about us in Charlottesville real estate by visiting
our website at TOWNCVILLE.COM for any big purchase in life working without a
safety net can be risky especially when hundreds of thousands of dollars are on
the line.When making an offer to purchase a home you have the opportunity
to protect yourself from the unexpected in a home transaction and to ensure
you’re getting what you’re paying for! Today’s video will define what exactly a
contingency is, how a home status changes once a contingent offer is accepted, and
a recommendation of a few important contingencies to consider as part of
your offer. Okay everyone, I have some really exciting news! I got merchandise!
My friend Karin Carr whom my channel is inspired by got me this t-shirt for
getting 100 subscribers! I’m really happy about that! Thank you all for your
support! I hope everyone is finding my videos helpful. After you get to a
hundred subscribers YouTube allows you to make a custom URL and so I decided to
go with Ashley Jurney REALTOR I was really excited to wear my shirt and show
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So we’re just going to jump right into this week’s video. What does active
contingent mean? A home status changes to active contingent when a home seller has
received an offer from a buyer but the buyer needs to meet certain conditions
before a sale can be finalized. A contingency is a clause written within
the literature of the contract or offer these are conditions or contingencies
that have to be met before you can close These conditions may include a home inspection or getting approval on a
mortgage or an appraisal. Here are some different contingencies for buyers to
consider. Mortgage financing contingency: this contingency gives the buyer a way
to back out of the contract if an application for financing is denied or
if financing is granted for a lesser amount say if the home appraises for
less than its expected. Home inspection clause: This allows buyers to bring in a
professional home inspector to inspect the property and to cancel or
renegotiate the deal if the inspection turns up a less than satisfactory result
such as significant structural flaws or major costly repairs buyers have the
right to ask the seller to lower the sale price offer buyer credits or ask
for necessary fixes to be completed before the close of the sale.
Contingencies for additional specialists and tests: If the initial inspection
turns up issues additional inspections by specialists or other tests may be
required this contingency allows buyers to have the home checked for things like
mold and other toxic substances as well as wood destroying pests like termites.It also allows for other specialists like chimney inspectors and foundation
experts to come look at the property before the sale is complete. Attorney
review contingency: This clause can give the buyer and the seller a specific
amount of time as specified in the contract to have their legal team
inspect the signed contract the lawyer will review the legality of the contract
and check four important safeguards for their clients before the deal is done.
Buyers home sale contingency: This clause allows the buyer to cancel the contract
without penalty if they’re unable to sell their current home in a specified
amount of time this way. If the buyer is under contract to sell their
residents and the deal falls through they won’t be obligated to purchase the
new property. Appraisal contingency: This Clause permits the buyer to have the
home appraised which is the must for many buyers financing their purchase and
to only follow through with the sale if the appraisal matches or exceeds the
home’s price if you’re using a lender. It’s smart to check to see if they
require this contingency as part of your purchase.Contract contingencies can seem
confusing but understanding them and including them in your contract is
essential to protecting yourself. Think of a contingency in a contract as a
safety net for both the buyer and a seller. So that’s all I have for you guys
today. If you liked this video or found it informative please give me some love
and like this video if you have any questions leave them down in the
comments below. Don’t forget to subscribe if you haven’t already! We are talking
Charlottesville Virginia and real estate every Wednesday! I hope you will join me
in next week’s video

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