Learn About the Three Most Common Contingencies That Slow Down a Real Estate Transaction
There are any number of things that can delay your real estate closing. At Neighborhood Escrow, our goal is to ensure that we help get your closing done quickly, correctly, and on time. Check out these escrow resources to learn more about that process or call us at 310-378-2456 with questions.
Contingency for home inspection
This clause enables buyers to have the property they want to buy inspected before making a final decision. They can leave if there is an issue for pretty much any cause. If they decide to do so, it will delay the closing indefinitely until a new buyer is found.
evaluation contingency
The appraisal contingency gives buyers the option to have the property they want to buy appraised, giving them the chance to hire an expert home valuer to assess the property’s true worth.
This condition allows the lender to ensure that the buyer isn’t overpaying for the property while also giving the buyer confidence in the price they’re proposing for the house.
Mortgage contingency
The mortgage or loan contingency was added to contracts to safeguard buyers who needed finance to buy a home. The buyer may withdraw without incurring any fees if the lender declines to accept their financing.
How long do contingencies in real estate last?
Depending on the type of contingency, the location, and the specifics of the sale, a contingency period often lasts between 10 and 60 days. The mortgage or loan contingency has the longest period of uncertainty.
There must be a deadline for a buyer to complete all necessary requirements since earnest money is forfeitable until these contingencies are removed by the buyer. A contingency period is the name given to the time frame. When a seller accepts a potential buyer’s offer in a genuine transaction, the contingency period starts.
The contingency period for inspections and assessments, for instance, is normally 17 days in California. Therefore, the date of the contingency removal would be May 17 if you accept the buyer’s offer on May 1. The mortgage contingency period, which might run 20 to 60 days, has the longest contingency duration. Any contingency period in the real estate offer might be shortened or lengthened at your discretion.
Hopefully this gives you the information you wanted regarding contingencies. Your escrow company is here to help.
