Asking the buyer to remove their contingencies two weeks prior to the closing date is a protection for the seller against the buyer walking from the property towards the end of the contract time-line. Remember, the seller has taken the property off the market so that you have time to conduct your inspections of the property. And during this time the seller is unable to sell the property to any other buyer, even if they received a higher offer than yours. This is also your protection against the seller accepting another buyerâ€™s offer.
However, once this time period that the seller allotted for the buyer to conduct their investigations (also known as contingency period) have passed, the buyer is expected to either release their contingencies â€“ meaning that the buyer is completely satisfied with the condition of the property and is willing to move forward or risk their earnest money deposit - or cancel the contract. The seller needs to have the buyer commit to the sales contract once the buyer has conducted all their investigations especially if they have additional buyers interested in the property. Basically, by releasing your contingencies you are showing the seller good faith in purchasing the property by risking your earnest money deposit â€“ if you choose the cancel the contract after your contingencies have been released then the seller has the right to take your deposit.
As far as lack of comparables, this will be up to the underwriter at the lender you have chosen to move forward with. Some lenders will be more lenient than others so I hope that your loan officer has explained your current lenderâ€™s guidelines for such a situation.
Also, please direct any specific questions about your transaction to those professionals whom you are currently working with. They will possess the most accurate answers, or be able to refer you to other professionals who can better assist you with your needs.
Hope this helps!
If you take those contingencies out, they can make you buy an overpriced extremely defective house.
Good for them, bad for you.