What Every Wake County Homebuyer Should Know About Contingencies

Jan 09, 2013

When it comes to investing in a Wake County home for sale, a contingency is a home buyer’s best friend.

These clauses, which allow you to cancel a contract without any penalty, are a great way to safeguard home buyers.

Today, I’m going to tell you about the various contingencies you can choose to include in your purchase contract.

Properties for Sale in Wake County, NC

As previously noted, a contingency is a clause that allows you to cancel a contract and even get your earnest money deposit back!

There are several different types of contingencies that home buyers can use. Here are some of the most common:

Contingent on Selling Existing Home

  • Probably one of the most popular, this contingency says that buyers are not obligated to purchase the new home until they have sold their existing home. Sometimes sellers will give buyers a time limit for this.

Appraisal

  • This means that if the appraisal isn’t at or above what the bank is willing to lend you, you can cancel your contract.

Loan Contingency

  • This means that if you’re unable to secure a loan for whatever reason, you don’t have to go through with purchasing the house.

Home Inspection

  • If the home inspection comes back with a bunch of costly issues that the seller is unwilling to repair, you can get out of your contract.

Lead-based Paint

  • According to federal law, you have 10 days to inspect for lead-based paint. As a general rule of thumb, those homes built before 1978 probably have lead-based paint.

Early Occupancy Agreements

  • This allows for the home buyers to rent the home before closing. This is also known as early buyer possession.

Private Well Inspections

  • Those homes that are not connected to city water usually sit on a private well. With this contingency, buyers can be assured that the water in that well is in fact drinkable and meets health standards .

Homeowner Association Documents

  • With this contingency, buyers can get copies of all homeowner association documents and approve them accordingly.

Wood Destroying Pest Inspection

  • Your contract will specify whether the home buyer or home seller pays for this inspection and whether garages and outside buildings are included in this inspection.

Roof Inspection

  • Self explanatory. Many home buyers will opt to pass over a house with extensive roof issues because repairing it could be thousands of dollars.

Sewer Inspection

  • This allows for the home buyer to inspect the home’s sewer system before purchasing the home.

Radon, Mold or Asbestos Inspections

  • Sometimes specially-licensed inspectors are needed to inspect for these troublesome matters in a home

Investing in Wake County, NC Real Estate

Hopefully you know a little bit more about contingencies than when you first started reading my Wake County real estate blog today.

For more expert advice on effectively navigating the Wake County housing market, please contact me, Rachel Kendall, and my team of real estate experrts.

We will be happy to assist you in finding your dream home on any one of the following real estate markets:

Until next time,

Rachel

Spread the love

Still Have Questions?

We can help! Contact us and we can answer any of your home buying questions about homes for sale and real estate in the Triangle or its many communities.