Buying a home is the most important purchase you’ll ever make. And while it would be nice to have everything go perfectly according to plan during the homebuying process, this doesn’t always happen. Therefore, it’s imperative that you, as a homebuyer, prepare for certain common problems that can arise during the homebuying process. One way to protect yourself from these issues is to include contingencies in your real estate contract. Below are some common contingencies that you may want to consider including in your purchase agreement.
Common Georgia real estate contract contingencies
Satisfactory inspection/Due Diligence – Most real estate contracts permit a home inspection prior to closing. If any deficiencies are found, the parties can typically negotiate to correct the problems. If the owner refuses to do so, the purchaser can back out of the deal if the contract allows.
Loan approval – This contingency permits a buyer to cancel the sale if he or she is unable to secure financing prior to the purchase.
Sale of your home – People often begin searching for a new home before their current home is sold. By adding a contingency addressing this issue in a real estate contract, a purchaser won’t be required to complete the purchase of a new home if his or her home is still on the market at closing.
Specific closing date – By adding a closing date contingency, a seller may back out of a real estate deal if the buyer fails to close by a certain date.
Satisfactory appraisal – Finally, real estate contracts often contain an appraisal contingency. This ensures that a home is worth at least the price that a buyer plans to pay for it. If the appraisal comes in lower, the purchaser may either renegotiate the price or walk away from the deal.
Let us help you with your new home purchase!
There are often various contingency periods that only allow for termination of a contract for a certain period of time – be sure to talk to your realtor or one of our real estate attorneys for clarification on your contingency periods. If you are planning on purchasing a new home in Georgia, you need an experienced Georgia real estate attorney to assist you with the transaction. At Klosinski Overstreet, LLP, we will assist you with all legal aspects of your real estate transaction. Our experienced Georgia real estate attorneys have experience facilitating the purchase of many types of properties, including single-family homes, condominiums, and multifamily properties, and we will work diligently to ensure that your transaction is a success. Therefore, if you are planning on buying a new home in the state of Georgia, please contact us as soon as possible for a free consultation.