Are you considering buying property? Sometimes, last-minute hitches can occur, which prevent you from buying a property. Or you discover something that means you no longer want to buy it. Creating adequate contingency clauses protects you from being tied into a contract when there is a problem.
- Title contingency: Some properties have an uncertain ownership history. There may be liens on the property due to unpaid bills. Or it may be part of an inheritance dispute. To avoid these problems from becoming your problems, have your attorney check that the title is free from issues.
- Home inspection contingency: You will need to hire experts to conduct thorough inspections of the property. They can check for defects with the building and issues with the land on which it stands. The contingency should allow you to back out of the contract or renegotiate the price if the inspection turns up a problem.
- Funding contingencies: It is normal to get a quote from a mortgage company before saying yes to a property. Sometimes, the interest rate can rise significantly, or other issues can cause the lender to turn you down. This contingency allows you to back out if you no longer have the means to fund your purchase.
Real estate law is designed to protect you when you buy or sell a piece of property. An attorney can help ensure you complete all the paperwork accurately and ensure a successful closure.