Home Buyers Want to Know: What is Contingency Period
March 25th, 2009 categories: 1st Time Home Buyer
If you are buying a condo or a house like my Sacramento home buyers are, you may be wondering about a very important part of the contract, the contingency period.
This is a time the home buyer is given the opportunity to find out about the property they are in the process of buying.
It’s a time when typically, by the California contract, the home buyer is given 17 days to pay for and conduct as many inspections as they want.
And the Seller must allow the home buyer access to the property to conduct each inspection the home buyer wishes to have performed.
When dealing with some bank owned, foreclosed homes you may find the 17 day contingency period might be shortened to 10 days. The 17 days starts the day after your contract was accepted. So, if your offer was accepted on March 31st, then your 17 days starts on April 1st and ends on April 17th. If you need more time to conduct your inspections, you can always request more time.
It’s important that you observe the time period given and have all your inspections as well as go over all disclosures. During this time, you will want to have a home inspection. If there is a pool or a chimney, well or septic tank you may wish to have additional inspections to cover those items as well. You are allowed as many as you want and can pay for.
It’s important to also note the seller is not obligated to correct any problems or conditions you may find during the inspections. And it is equally important for you, as the home buyer to know that you are not obligated to buy the property and you can withdraw your offer during the contingency period and still retain your deposit.
The Lender will have the property you are buying appraised during this time. When all of the terms and conditions have been met then you will be asked to remove your contingencies.
Hopefully, your Realtor has made sure to leave your loan contingency in place during the duration of the contract since there have been many cases were the banks have failed to fund loans at the last minute. Your deposit check would be in jeopardy if this was not made a condition as part of the original contract.
One of my Sacramento first time home buyers will be closing the first week in April and had a successful disclosure period. Next week Bay Area investors will be conducting their disclosure period for a successful closing, too.
It’s painless and your Realtor will help guide you through the process toward a successful home buying experience. Do enjoy but also understand the real estate contract that you, as a home buyer signed.
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Other 1st Time Home Buyer Articles:
First Time Home Buyers in Sacramento and Granite Bay
First Time HomeBuyer’s Check-off List – Part I
First Time HomeBuyers Check-Off List – Part II -Write An Offer
What Every Sacramento Home Buyer Must Know
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I make an offer for a house in the Antioch CA Area. Now, a friend told me to watch out
for the crime statistics, how do I ask for
an Area Crime Report. Thanks
Ann
On the right hand-side of this blog, Sacramento Real Estate Voice there are two links where you can check crime reports in neighborhoods. Hope that helps you make a good decision and good luck with the offer you have placed on the house in Antioch.