Still clueless about the contingency clause (of a home inspection) in home purchase contracts? Read on
If you are still not sure about what the contingency clause in your purchase contract is about or what you can
If you are still not sure about what the contingency clause in your purchase contract is about or what you can and should expect from an inspection, then you need to read on. It's your first purchase and you wish you had already taken possession of your dream house. But you still need to go through certain formalities - from making sure that you have a contingency clause in your purchase contract and to making sure that you pick the perfect person to inspect your property. Just know that the contingency clause is there to protect your interests.
Contingency clause: A contingency clause is something that provides you with a fast exit in case the inspection flags major issues in the residence. It should be pointed out that a home inspection in Albuquerque is bound to throw up a few issues, from minor to major. And a contingency clause in the purchase contract typically provides you, the buyer, with an exit strategy in case the inspection discovers a leaking roof, cracked foundation, or worse, water seepage as well as electrical issues. You need such a clause in your purchase contract, which apart from ensuring that you have a way out, makes sure that the contract is voided, in case of major issues. So you would have a safe way out, and that's why you need a dependable person to head the home inspection.
- The necessity: When it comes to a home inspection a home inspection is more than necessary. It has become essential and is often part of any real estate purchase these days. And that is why adding a contingency clause ensures that your interests are protected and that you can void the contract in case of any major issue. Just to put it in perspective, you need to ensure that you add a contingency clause in the purchase contract or it would still hold, even if the home inspection were to throw up any major issue, be it the roof or electrical wiring. And even though it may cost you thousands of dollars, the contract would still hold if you have not added the contingency clause.
- The wording matters: When you write the contingency clause, make sure that you pay attention to the wording. Make sure that you write something along the lines of "how the seller must agree to have the whole residence inspected", and this should ensure that your inspector can inspect the whole residence from top to bottom, no holds barred. And if you are worried about Radon, black mold, and other issues, you can specifically raise this with the inspector or include testing for the same in the purchase contract as well. You can always get a professional to take samples from the soil, test it and ensure that it is safe to reside in.
- Duration: You can even list the duration during which time, you can shop for a home inspector and one who is both dependable and reliable. You need someone that you can depend on, and finding the right person quickly is a hard gig to follow. And that’s why you need to ask for at least 14 days, as that should provide you enough time to zoom in on the perfect candidate.
- Credentials: Most buyers would be anxious about a home inspection which is all the more reason that you may want to list the credentials of the inspector, as part of the contract. Typically, you agree to use a certified professional to inspect the seller’s property and not just any person on the market. So that the seller can be happy that you would be utilizing a real professional and not someone just made to act a part in a play.
This is what a contingency clause is all about and one that you need to include in your purchase contract.
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