What Contigency means?

Asked by Olga, West Palm Beach, FL Thu Oct 29, 2009

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Nadine Mauro, Agent, Lake Worth, FL
Thu Oct 29, 2009
Hi Olga,

The most common reason right now for a contingency in a Real Estate transaction is waiting for the bank to approve a short sale.

Since a great many houses are selling for less money than is owed to the bank, the sellers bank must approve taking the lesser amount. Therefore, many house sales are contingent upon lender approval.

Nadine Mauro
The Herman Group Real Estate
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Lisa Orme, Agent, Windsor, CT
Thu Oct 29, 2009
A contingency is something that must be completed by one or both parties of a contract before all the terms are fully enforceable and the sale can come to closure. Inspections are one type of contingency. The buyer providing evidence of their ability to obtain a mortgage is the other most common contingency. Less frequently, a contract could be "contingent" or not fully enforceable until the contract is reviewed by an attorney, for instance. Or it could be contingent upon a seller completing a particular repair, or providing certain information or documentation about the property, or taking out a permit for work previously completed on the property.
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CCC, Home Owner, San Diego, CA
Thu Oct 29, 2009
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Joan Bates, Agent, West Falmouth, MA
Thu Oct 29, 2009
Contingency is the protection a buyer has in the offer to purchase for factors as yet unknown: mortgage approval is the key element, home inspection is another classic. they represent the additional elements of a contract beyond the purchase price.
Web Reference:  http://www.JoanBatesRE.com
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