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Four common contract contingencies that protect home buyers

On Behalf of | Jun 29, 2021 | Residential Real Estate

Buying a home in New York is an important decision. With that in mind, it’s a good idea for any home buyer to know about the property they’re purchasing. If you’ve signed a contract on a home you no longer want, it’s wise to learn about contract contingencies. Contact contingencies allow certain homeowners to cancel a contract without any penalties. Here’s a closer look at a few common types of contract contingencies.

Appraisals

One of the most important steps when buying residential real estate involves property appraisals. If you received a property appraisal that’s far lower than what a seller is asking for, this can negatively impact the odds of you purchasing this home.

Home inspections

While home appraisals help determine a property’s worth, many buyers will want to know more about the condition of a house. To solve this problem, people hire home inspectors to take closer looks at properties. If a home inspection uncovers previously hidden problems, you’re dealing with contract contingencies.

Loan contingencies

Sometimes, the purchase of a home can fall through for reasons that don’t have anything to do with a property. Instead, loan contingencies focus on potentially uncovering information that could result in a mortgage application getting denied.

The presence of lead-based paint

Under federal law, a home buyer has at least ten days to inspect a property for lead-based paint. Lead-based paints can cause a wide range of health hazards. While currently outlawed, homes built before 1978 can contain this type of paint.

To summarize, contract contingencies can help protect home buyers from making bad financial decisions. If you need to help ensure you’re not making mistakes while buying a property, it could be beneficial to contact a real estate transaction attorney.