Contingencies are a regular part of real estate contracts for a wide variety of reasons. They are generally limited to a set number of days so that, if the individual who has asked for the contingency cannot fulfill it, the contract can be made legally null and void. For a home seller, this is important, as it allows the seller to place the home back on the market for sale.
A contingency in a real estate contract may occur when a buyer wishes to purchase a home, but something else must occur first.
For example, buyers must first sell their own homes before they can purchase the seller’s home. In this case, the buyer would provide the seller with a deposit and a “contingency” to purchase as soon as the buyer’s house is sold.
Other contingencies may include an action on the seller’s part. For example, a buyer will purchase the home contingent upon the seller replacing the water heater. Another typical buyer contingency is securing financing or fixing the roof.
When a contingency clause is part of the real estate purchase contract, and the responsible party does not fulfill the obligation, this is known as an unfulfilled contingency. In many cases, where the sale cannot be completed by the date specified, the real estate contract is canceled and this is considered an unfulfilled contingency.
If you are preparing to sign a purchase contract, or are facing a real estate dispute such as an unfulfilled contingency, please contact real estate litigation experts The Feldman Law Group in Walnut Creek, California.
About the Feldman Law Group
Headquartered in Walnut Creek the Feldman Law Group provides special needs support and real estate litigation in and around the San Francisco Bay area. Founder Aaron Feldman is an experienced litigator and trained mediator, offering his clients a broad approach to their special needs support or real estate litigation. Contact Aaron today for your free consultation.
Email him at: email@example.com or call him at: 925-283-6691.