| We all know that there will be a contractual | | | | property does not meet the requirements put up |
| agreement with contingency clauses in any real | | | | by the lender. Mostly it will not meet the appraisal |
| estate transaction. But it does not mean that the | | | | guidelines. |
| transaction will be smooth and as expected. | | | | - Buyers can back track if there is an evidence of |
| Once known as Weasel Laws, the contingency | | | | termite problem. The clear evidence of wood |
| clauses in contract play a major role in the real | | | | boring insects comes under contingency clause. |
| estate transaction. The clauses are dealing with | | | | - The lead based paint can be hazardous to health. |
| the situation of either buyer or seller weaseling | | | | The buyer can inspect the house to assess the |
| out due to one or other contingency. | | | | paint of the property. If he locates lead based |
| The contingency clauses are aimed at protecting | | | | paint, he can come out of the contract. |
| the buyer and the seller involved in a real estate | | | | - In some areas, drinking water will be drawn |
| deal. The commonly used clauses are described | | | | from the wells. If the water does not pass the |
| here. | | | | health inspection, buyer can go out of the deal. |
| - Loan contingency deals with the situation by | | | | - In the condos and townships, owners |
| which the buyer is unable to get the required loan. | | | | association's clearance is required for a buyer to |
| In this situation he can go out of the deal. | | | | settle there. If they do not give the necessary |
| - Sale of another home contingency is a condition | | | | permission, the buyer will be allowed to go out of |
| in which the buyer could not able to sell another | | | | the deal. |
| home within the time frame to acquire the | | | | - Other undisclosed facts about the property, like |
| offered property. | | | | an oil company holds the right to drill etc can |
| - Title report contingency clause deals with the | | | | make the buyer to raise his objections and he |
| easements, encumbrances and liens on the | | | | may even withdraw from the contract. |
| property. If the buyer does not accept the states | | | | Make sure that while purchasing a property, you |
| of the title report, he can withdraw from the deal. | | | | are listing out all kinds of the contingency clauses |
| - Home inspection contingency occurs when the | | | | in the contract. The listing of all these contingency |
| buyer identifies some undisclosed damages to the | | | | clauses will ultimately help the buyer and seller as |
| property. In this situation the buyer is not bound | | | | well. |
| to hold on the contract. | | | | Â(R) Copyright 2008 RealEstateBloom. All |
| - Purchase agreement need not be valid if the | | | | rights reserved. |