Contingencies To Keep When Purchasing A Florida Home

In competitive housing markets, it can be tempting to do just about anything to get a seller to take your offer. Many times, buyers will drop contingencies in the contract to entice sellers. This is a bad idea for many reasons. First and foremost, if there’s something wrong with the house, you have no way to get it fixed. The problem becomes yours especially if you waive individual rights that you have as a buyer. If you want to drop some contingencies, you have a few options. Read on to find out which contingencies you should never cut when buying a Florida home.  

Inspection Contingency

Any real estate agent will tell you that they recommend their buyers get a home inspection. You have a right to have a licensed home inspector check out the home you’re about to purchase within a specific timeframe (usually a week) after you sign the purchase and sales agreement. When the inspection is completed, you’ll get a detailed report about the home. You have the right to request that the seller make repairs to the house. You can decide what from the inspection you wish to have fixed. The seller can simply agree to make the repairs or make a counteroffer to you in the form of a cash payment. The seller can also refuse to make the repairs. From here, buyers have the right to back out of the sale and get the deposit back. The inspection is one of the most critical contingencies that a buyer can have. 

Financing

You most likely need financing to buy a home. A financing contingency states that the sale of the property is based on the buyer being able to secure funding before the transaction is complete. If you can’t obtain a loan for some reason, this clause protects you as a buyer to ensure that you aren’t responsible for coming up with the money to buy the home on your own. An impossible feat for most Floridians on a day-to-day basis. Usually, you’ll have up to 14 days to get the financing approved by your lender.

House-Sale Contingency

If you’re selling a home and buying a new one, you need this contingency in your contract. This clause states that if the sale of your current home falls through, you can back out of the purchase of the new house. This clause can also be called a “prior-sale contingency.” It’s excellent protection for you as a buyer to allow you to back out of the sale without losing any of your earnest deposit money. 

If you’re buying a home in Florida, talk to your real estate agent and have him discuss the essential contingencies that you should have in your contract specific to your situation.