Home Buying in 92337>Question Details

Johnny, Home Buyer in Chino, CA

First time buyer in CA. Do I need to include loan and inspection contingencies in my offers?

Asked by Johnny, Chino, CA Mon Oct 11, 2010

Many of the properties I've looked at require a large EMD. I want to protect myself with a loan and inspection contingencies so that I can easily get my EMD back in the event these 2 contingencies aren't met. Do I need to explicitly include these contingency clauses on the purchase agreement form? From my understanding after looking through the form these are already included. Is my understanding of it correct?

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Answers

7
Be sure you do not release the lender contingency, until lender acceptance of appraised value.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Oct 19, 2010
Yes you are correct..as it stands in an RPA residential purchase agreement you have 3 ways to back out of a contract.
1. loan
2.appraisal
3. inspection

All within 17 days if the agent you are using did not alter the standard RPA.
0 votes Thank Flag Link Fri Oct 15, 2010
You should absolutely have them included in your offer. I would have to look at what form you are using to make sure they are included. You should have your own agent & they should be explaining all this to you. I'd be happy to help you with your purchase. Call me anytime with your questions.
0 votes Thank Flag Link Tue Oct 12, 2010
Do you have an agent? You definitely should consider using one. When your agent submits your offer you definitely should include an inspection period and a financing contingency clause.

Best of luck to you!
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Tue Oct 12, 2010
What did your agent tell you?

What is large?

The "standard" EMD is 3% of the offer price. Less than that the seller is going to have questions about your earnestness. If you are an entry level buyer, and you are encountering multiple offer situations, then you need to strategize with your Realtor on how to get your offers accepted.

Good luck.
0 votes Thank Flag Link Mon Oct 11, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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I absolutely agree with Anna, please get an agent or an attorney. You are working with legally binding documents. Furthermore, in a market where home values can change day by day it is best to have someone to help you protect your best interests.

I work in PA and our agreement of sale does contain language that allows a buyer to select or to waive contingencies for various inspections and for financing. However the paperwork must be filled in correctly for those contingencies to be in effect.

Good luck with your home purchase!
0 votes Thank Flag Link Mon Oct 11, 2010
If you don't have an agent, do protect yourself and consider utilizing the services of an attorney who specilizes in real estate--Do keep in mind that an agent of your own, won't cost you any commission--the seller pays out of the proceeds of the sale--if two agents are involved in the transaction, the commission is shared --it will only cost you commission if you have an agreement with your agent to pay above what the seller is paying.
0 votes Thank Flag Link Mon Oct 11, 2010
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