Home buyers and home sellers will typically include conditions of sale in a contract to purchase. The sales will be contingent on certain terms or events. It is critical that these intentions are communicated clearly and concisely in writing. The contingency itself should specify what will happen and when it will happen. The contingency must also provide for the contract to be canceled or renegotiated and for earnest money distribution in the event the contingency cannot be satisfied. Contingencies should be written and reviewed with great care.
The following contingencies are often incorporated into purchase contracts.
Financing: type, interest rate, amount financed, and term of the loan
Whole House Inspection
Termite and Wood Destroying Insect or Organism Inspection
Mold Inspection
Lead Base Paint Inspection
Survey
Appraisal
Verification of Zoning, Deed Covenants and Restrictions
