Contingency Clauses In Mississauga Real Estate Purchase Contracts
A contingency clause is something that outlines and defines a condition that must be fully satisfied and met before the purchase contract with a home for sale in Mississauga can become legally binding. Both the buyer and seller agree to the terms and conditions of every contingency clause when they agree to and sign the purchase contract. Contingency clauses are widely used and there are some that are included in almost every purchase contract. Although the following contingency clauses are very common, it is strongly suggested that you discuss each one with your Mississauga real estate agent so that you can fully understand the impact that they may have on the transaction.
Inspection Contingency
An inspection contingency provides the buyer a specific amount of time to complete a full home inspection using a third party inspector. The inspector will inspect the entire property and provide a report to the buyer that outlines any deficiencies or issues. The inspection contingency can go beyond the typical home inspection and include very specific inspections like foundations/structural, septic systems, roofs, pools and more which may require a separate inspector for each specific component being inspected. Depending on the terms and conditions of the inspection contingency, the buyer may be able to cancel the home purchase if defects are found, ask for additional time to complete further inspections or request that the seller repair any deficiency found or provide a concession that relates to the deficiency found. If a deficiency is found, it may have a dramatic impact on the Mississauga home value.
Appraisal Contingency
An appraisal contingency provides the buyer the opportunity to make sure that the home is valued at a minimum amount. As an example, if the home is being purchased for $200,000.00 but is only appraised at $150,000.00, the buyer may not see the value in buying the home for the purchase price previously agreed upon. In essence, the appraisal contingency allows the purchase contract to be terminated if the home is not appraised for the minimum amount agreed upon in this clause. Instead of terminating the purchase contract, some contingency clauses may provide the seller the opportunity to lower the purchase price. Buyers can get a good understanding of home values by looking at real estate websites like http://www.mississauga-homes.com
When dealing with contingency clauses top real estate agents like Joe Battaglia are a key resource in developing a plan for each and every situation. There is usually at least one type of contingency clause in every transaction and it is important to understand what each one means and the impact it may have on the deal.
Inspection Contingency
An inspection contingency provides the buyer a specific amount of time to complete a full home inspection using a third party inspector. The inspector will inspect the entire property and provide a report to the buyer that outlines any deficiencies or issues. The inspection contingency can go beyond the typical home inspection and include very specific inspections like foundations/structural, septic systems, roofs, pools and more which may require a separate inspector for each specific component being inspected. Depending on the terms and conditions of the inspection contingency, the buyer may be able to cancel the home purchase if defects are found, ask for additional time to complete further inspections or request that the seller repair any deficiency found or provide a concession that relates to the deficiency found. If a deficiency is found, it may have a dramatic impact on the Mississauga home value.
Appraisal Contingency
An appraisal contingency provides the buyer the opportunity to make sure that the home is valued at a minimum amount. As an example, if the home is being purchased for $200,000.00 but is only appraised at $150,000.00, the buyer may not see the value in buying the home for the purchase price previously agreed upon. In essence, the appraisal contingency allows the purchase contract to be terminated if the home is not appraised for the minimum amount agreed upon in this clause. Instead of terminating the purchase contract, some contingency clauses may provide the seller the opportunity to lower the purchase price. Buyers can get a good understanding of home values by looking at real estate websites like http://www.mississauga-homes.com
When dealing with contingency clauses top real estate agents like Joe Battaglia are a key resource in developing a plan for each and every situation. There is usually at least one type of contingency clause in every transaction and it is important to understand what each one means and the impact it may have on the deal.
