Home buyers can protect themselves by including an inspection contingency in their purchase offer, which will allow them to cancel closing on the deal if an inspector finds problems with the property. As soon as the seller accepts a written offer, the document becomes a legally binding contract. It supersedes any previous oral agreements, so be sure it contains clear references to any promises made by either party during negotiations.
The purchase contract could be written to include a contingency for any repairs found to be needed or related items the seller must take care of before closing. If these are not attended to, the buyer could hold the right to delay or possibly cancel the closing. Otherwise, buyers face losing their deposit. There also may be costly legal implications stemming from backing out of a contract.
The buyer usually has the right to choose the inspector and also is responsible for paying for the inspections. In addition to an overall inspection for structural soundness, buyers can request a satisfactory pest control inspection report, roof inspection report or contingency for no potential environmental hazards such as asbestos or radon gas.
Contingency clauses should satisfy the concerns of both the buyer and seller. quot;The sellers will be nervous about contingent offers,quot; Lank states. quot;they will be taking their house off the market on your behalf, without any guarantee that the sale will go through. So it's customary to set a time limit on contingencies.
Buyers also can protect themselves by inserting additional necessary contingencies. Indicate which items like curtains and appliances are to remain with the house. Then stipulate you have the right to personally inspect the home 24 hours before closing to make sure all is in order.