When an individual purchases a home the contract always lists several conditions that must be met otherwise closing cannot happen. These conditions usually cover issues such as inspections, financing, insurance, etc. These types of conditions are called “contingencies” and they are important as they give you an out if something fails to happen, perhaps you will not get financing as you hoped for or certain discoveries are made which act as a barrier to closing the deal. All these various contingencies is one reason why having a real estate attorney in Naples is extremely important for without the attorney you may find yourself in an awkward situation.
Types of contingencies:
Many contingencies are standard and neither the seller nor the buyer is foolish enough to reject them. A good example is a buyer’s inspection contingency, this is very standard. This allows the buyer to establish the condition of the property by asking for reports from third party inspectors that the buyer hires. These inspectors will focus on such things as structural integrity, the roof and any insect infestation.
It is also common to have a financing contingency. This makes the sale contingent on the buyer securing a loan which is acceptable or other alternate ways to purchase the house. This contingency has become rather a big deal as a result of the current recession; it was not too many years ago when it was assumed that the buyer would get a loan with no problems, whereas in this financial climate a loan offer can be withdrawn at the last minute leaving the deal in jeopardy. The result of this is that those selling the house tend to favor buyers who can purchase the house for cash, eliminating the loan contingency altogether.
In some cases the real estate attorney in Naples is suggesting an insurance contingency be added to the deal. In recent year’s property owners in states that are subject to hurricanes, earthquakes and other disasters are finding that they cannot get insurance on the house so now people are making the contract contingent only applying for and getting an insurance commitment in writing.
There are a number of other contingencies that enter the picture but they are not the norm. For example, the sale may be contingent on the seller being successful in buying another house or the buyer being successful in selling their current house. In cases like this you real sate attorney in Naples will normally insist that a time limit be placed on successful completion of these transactions.
If you are in the process of buying or selling your house you will need the guidance and assistance of a real estate attorney in Naples. If this is the case you are welcome to contact Willis & Davidow, LLC.
