You can include any contingencies you want in your offer to purchase a home. But don’t load up your offer so much that the seller will walk away. You should consult a lawyer to help you draft your offer, and discuss with him or her which contingencies to include.
Here are the most important ones:
- The offer should include the sales price that you agreed to pay for the home.
- Your offer should also make the sale contingent upon the seller producing a clear title to the property. ‘Title’ is the legal ownership of the property. It should be free and clear of any other claims.
- The sale should also be contingent upon you being able to obtain financing. Even if a lender has pre-approved you to borrow a specific amount of money, you should still make financing a contingency of your offer.
- The sale should also be contingent upon you receiving a satisfactory home inspection, flood zone determination, as well as other inspections you might want to obtain, such as termites, lead paint, etc.
- Clear title, financing, and satisfactory home inspection are the 3 big contingencies you should put in an offer to purchase a home. If you are purchasing a condominium, you should also make the sale contingent upon a satisfactory review of the condo association documents and finances.
- Your lawyer may advise you to include other contingencies. The agreement should also specify dates that these contingencies must be met, a closing date and a list of what appliances and other personal property will be included in the sale.