BOULDER, CO, May 31, 2016—When you’re looking to purchase a home, it's important to anticipate potential problems that may arise before closing. This is where contingencies come into play.
“Contingencies in an offer protect against potential problems, so that if something does go wrong, you can cancel the contract without penalty,” explains Phil Boren, Broker Associate of RE/MAX of Boulder, Inc., who says contingencies should be included in any offer you present to buy a home.
Most offers include two standard contingencies, says Boren: a financing contingency, which makes the sale dependent on your ability to obtain a loan commitment from a lender; and an inspection contingency, which allows you to have a professional inspect the property.
Let's say it's the day before closing and your inspector finds fault in the home's foundation that would take thousands and thousands of dollars to repair. With the proper contingency in place, buyers can decide if they want to move forward with the purchase, or back out due to the new issues unveiled.
“Without contingencies, buyers could forfeit their deposit under certain circumstances if they back out of a deal,” says Boren.
The purchase contract should also include the seller's responsibilities, such as passing clear title, maintaining the property in its present condition until closing, and making any agreed-upon repairs.
For more real estate information, contact RE/MAX of Boulder, Inc. at firstname.lastname@example.org, 303-441-5647, or RE/MAX of Boulder, Inc..
Phil Boren is a 26-year veteran real estate Broker and Realtor, specializing in consulting with buyers and sellers in Boulder, CO and along the Front Range of Northern Colorado. Held Real Estate Broker's license in Texas, California and Colorado; Managing Broker for over 200 agents and Brokers for Century 21 and RE/MAX franchises. Award-winning Realtor with experience in management, sales, marketing, relocation, appraisal, REO, BPO's, foreclosures, short sales; previously held the MAI designation from the Appraisal Institute. Experienced in both residential and commercial real estate and achieved the No. 14 individual ranking in the 5-state, Mt. States Region for RE/MAX International in 2001, based on sales volume. Received my BSBA in Finance and Real Estate from the University of Arkansas in Fayetteville, where he was a 4-year starter and 4-year football letterman for Hall-of-Fame coach, Lou Holtz.