Are you planning to skip the home inspection contingency clause? Here is why this might not be an intelligent decision. A home inspection contingency clause is a binding real estate contract that protects buyers from buying a lemon house. It works as a beneficial element for both the buyer and seller. Let's find out how.
Understanding the real meaning of the "CONTINGENCY CLAUSE" -
A home inspection contingency clause is a purchase agreement highlighting that a buyer can inspect the property thoroughly from top to bottom and decide whether to invest their money. The clause can also be added to a real estate agreement between the buyer and the seller. It grants the buyer a choice of negotiating, inspecting, and backing out of the property deal.
The clause typically states that the buyer has a certain number of days to complete the inspection and request the repairs or negotiations. If the seller is unwilling to make the necessary repairs or deduct the rates, the buyer can choose to walk out of the deal.
While drafting a home inspection contingency clause, you must be specific about the types of repairs or issues you are willing to accept.
Now here are a few crucial reasons why you must avoid skipping on contingency clause:
A home inspection clause can support buyers in getting an entire professional home inspection before closing the property deal. This clause works as an opportunity to make an assured and confident buying decision, as property is an asset and involves a person's life savings. Hence, it's better to get a home inspection.
Highlights potential issues:
A home inspection can help you track down the hidden defects in the property that might become a future threat. You might encounter issues like roof structural damage, plumbing problems, electrical malfunctioning, etc. By identifying these kinds of defects, you can become more aware of what you are investing your money in and negotiate your repairs accordingly.
Allows buyers to negotiate:
Discovering expensive repairs will be manageable when you get your clause on time as it can easily be negotiated with the sellers. The professional property inspection report can be shared with the seller – you can negotiate for getting the issues fixed or deduction in the pricing of the property. Being a buyer and having the upper hand while bargaining will help you save some money and avoid investing in unwanted repairs.
Sense of clarity and confidence:
Knowing the minute details of the property helps you make a confident buying decision. Having your clauses ready gives you the authority to inspect the entire property. If the property snagging results don't bring up any nasty issues in your chosen property, it gives you a sense of clarity and confidence that you have made a right decision.
Buyers can secure themselves from making a wrong choice by including a home inspection contingency clause in their real estate contract. Having a contingency clause in your hand can give you the authority to inspect and the power to negotiate. It helps in building trust between you and your seller.
We hope you understand the importance of the contingency clause through our blog post. Including a contingency clause can educate you more about your property as a potential buyer. So don't waive the contingency clause, and never avoid property inspections.
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