If you’re looking to buy a house, it starts with making an offer. This is a contract, but it doesn’t have to be accepted by the seller and it doesn’t necessarily have to be binding for you. You’re just communicating what you would offer and letting the seller weigh their options.
One way to give yourself more flexibility is to include contingency clauses. When these contingencies are not met, then you are allowed to walk away from the deal. You’re not bound by the contract any longer. Why would you want to do this?
A home inspection
One of the most common reasons to do this is because you simply haven’t had the home inspection done yet. You may love the home, you may think it looks like it’s in good condition, but you may also not be an expert in this industry. If the house does not pass the inspection, then you don’t want to be obligated to buy it, so the contingency clause ensures that you’re not.
Will sellers disapprove?
Contingency clauses are very common, especially when it comes to home inspections or getting approved for financing. On the whole, most sellers are not going to have any problem with you including them. They may find the same basic clauses on every single offer that they get, so it makes no difference to them. They are choosing based on the other terms of those contracts.
However, one thing to consider is that some sellers are more likely to accept an offer that does not have contingency clauses. They may see this as simply an easier and safer way for them to guarantee the home sale. This doesn’t necessarily mean they believe that the house would fail an inspection or some of the other clauses, but knowing that it doesn’t have to pass means there is less of a chance that the buyer will walk away from the deal. Sellers like that security.
What should you do?
There are a lot of important legal questions to ask when you’re buying a home or putting in an offer. Be sure you know exactly what steps you should take in your situation.
