Tuesday, September 25, 2007

What is a contingency?

These are conditions written into real estate offers and contracts to prevent a buyer from being forced to buy a house that is unsatisfactory--either structurally or financially. Conditions to the performance of one or both parties to a contract. The most common contingencies in a real estate sales contract are for financing and for inspection of the property. In general, if a contingency cannot be met, the party subject to the contingency has the right to declare the contract null and void and be released of his obligations to the other party.