Protect yourself with contract contingencies

With any real estate transaction, the goal is for everything to go smoothly. It's encouraged that both sides work with agents and attorneys, so they know that their contracts are legally binding.

When you purchase a property of any kind, it is very important to have a solid contract with contingencies to help you get out of the purchase if something goes wrong. Here's an example. If you ask that the other party repairs the electrical system before you go through with the purchase and have an inspector tell you it still fails upon a second viewing, you would be within your rights to walk away.

Why is it important to have ways out of a purchase agreement?

The most important reason is because you don't want to buy something that isn't worth what you're paying. You want to know that everything you request will be taken care of before you make the purchase. You need to know that the property passes an inspection and will not cause you thousands in expenses immediately upon moving in (unless you're purchasing a home for that purpose).

Contingencies also give you a right to property inspections and to walk away if those inspections do not go as planned. For every home that looks to be in good condition and has no problems, there are several that look wonderful but are full of hidden dangers.

Your attorney can help you make sure your rights are protected during the home-buying process. A good contingency plan makes a world of difference in protecting you against unfair treatment as a buyer.