But sometimes things come up that make you not want to purchase the home you thought you wanted to purchase.
Perhaps the home has a costly issue that needs repairs or it’s infested with wood destroying pests and you only found out during the home inspection.
For these kinds of situations, buyers have the use of contract contingencies to help them get out of a contract.
Continue reading to learn more about the various types of contingencies.
Bergen County Home Buying
A contingency is something that allows you to cancel a contract without any penalty – such as losing your earnest money deposit.
Here are the various types of contingencies you may encounter on the Bergen County real estate market:
Appraisal: If a home buyer has to get a loan in order to purchase a home, they can add a contingency that requires that the appraisal is for at or above the amount that they’re getting the loan for.
Loan Contingency: Sale of the home is contingent upon whether the home buyer can secure a loan.
Home Inspection: The home must pass a home inspection with no costly issues discovered. If any are discovered, the buyer can ask the seller to fix them.
Wood Destroying Pest Inspection: This contingency says that before the sale of a home, the buyer has the right to conduct this inspection.
Lead-based paint: Federal law gives all home buyers 10 days to inspect for lead-based paint. Generally speaking, those homes built before 1978 most likely have lead-based paint.
Asbestos, Mold and Radon Inspections: This may require an additional inspection by someone who’s licensed to check for these specific issues.
Homeowner Association Documents: The buyer can obtain a copy of all homeowners association documents, such as meeting minutes where applicable.
Private well inspection. In the event the home is not connected to city water, this inspection ensures the water in the private well is just as clean as the water provided by the city.
Contingent on Selling Current Home. This contingency is particularly popular for current home owners trying to purchase a new home. This means that you’re not obligated to buy the new home unless you sell your current home.
Investing in Bergen County, NJ Real Estate
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