Q. What is a Contingency in a Real Estate Contract?
A. A contingency is a contractual provision that gives a party to the contract the ability to condition performance on the occurrence or non-occurrence of a certain event. Let’s say for example, a buyer has a 17-day inspection contingency under C.A.R.’s standard form Residential Purchase Agreement & Joint Escrow Instructions. The inspection contingency works as a protection for the buyer. It allows the buyer to conduct investigations and review disclosures, reports, and other information affecting the property. If the buyer is satisfied with the condition of the property, the buyer may perform on the contract.
If, on the other hand, the buyer is dissatisfied with the condition of the property, the inspection contingency allows the buyer to cancel the contract and get back his or her earnest money deposit.
If you are interested in purchasing real estate, please contact Linda Ginex with Star Real Estate…because the right Realtor makes a difference.
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