Ask the Realtor

In a sales contract, what does the term “contingency” mean?

Sales contracts typically contain several “contingency” clauses, or stipulations that the sale is subject to. For example, with a mortgage contingency, if the buyer is not able to obtain financing within the specified time frame, neither the buyer nor the seller is required to complete the purchase. Other common contingency clauses are related to inspection issues, such as a general inspection, termite inspection, or radon testing. Another frequent contingency is the purchaser’s need to sell his or her current home first. A Weichert agent, like me, is trained to clearly explain these types of contingencies to you.

What happens if a home inspection reveals a serious problem?

Generally, if any of the inspections or tests reveal a serious problem, a buyer with a properly drafted contract can get out of the contract. What usually happens, however, is that the cost of remedying the problem becomes an issue of negotiation between the buyer and seller. This is where having a full-time professional Realtor is critical in resolving the issue and keeping the purchase moving forward. A Weichert Realtor has the skills to negotiate on the client’s behalf. One solution, for example, may be to have the seller cover the cost 100 percent, or to split the cost between the buyer and the seller. This is a conversation that I am prepared to have. Call me anytime at (410) 381-3336 in the office or (301) 370-6561 (mobile) with any questions about the home-buying process.