Writing the Contract part 3--the contingencies

We have written the contract and told the seller all the details of the major contract conditions, but there are the other "contingencies" or conditions that might apply to this contract and your ability to purchase. Do you want a survey of the property lines so you are sure where the fence is and whose property it is on--yours, the neighbors, on an easement of someones--answer yes!!
Do you want or does your lender require a pest inspection? If so we will get one--the seller pays for both of the above unless you make other arrangements in the contract. Is there special financing--FHA and VA have special provisions about how much the seller can contribute to repairs required by that type of financing. If you purchase a country property that is on well and septic you will need both the well and septic inspected to be sure they are working and safe--you may need the septic pumped out if it has been over 5 years since it was done. Some wells will need to be shocked and retested if they fail the first test to be sure the water is good to drink. We talked about the home sale contingency in the previous blog, but this is a contingency that is important to be addressed in the contract. You may want a radon test if there is no system to take care of it in the home. You may have a home to sell (another blog) and we have to tell the seller about that home and where in the process of selling it you are, just on the market or do you have a contract with a closing date firmed up. There are a few other contingencies that may need to be used, but for the most part, these are the major ones that protect you. At the time of the contract, you will give "a good faith deposit" also called earnest money and that is usually $500 to $1000 in our area. Some areas ask for more. This money will secure the contract on your home and says you are making an offer in good faith. If the contingencies you have put in place are not satisfied, such as selling your current home, then the earnest money (most times) will be returned to you and you no longer are bound by the contract. Only sign a contract for a home in good faith knowing that you are purchasing that home and it is a big decision, not to be taken lightly.