what is a contingency?

Asked by Sofiabgonzalez, Riverside, CA Thu Oct 23, 2008

17 days of contingency,what does that mean?

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Lynda & Steve…, Agent, Palm Desert, CA
Thu Oct 23, 2008
Hi Sofia,
The California Residential Purchase Agreement allows for many contingencies on the purchase of real estate. For example, depending on the contract, there can be a loan contingency (if the buyer is not able to get a loan, they are not obligated to purchase the property), appraisal contingency (similarly, if the property does not appraise for the purchase price, the buyer is not obligated to purchase the property), disclosure contingencies (various disclosures the seller provides to the buyer), inspection contingencies, etc.

The "default" time period for these contingencies is generally 17 days from the date both seller and buyer agree to the terms of the purchase, assuming the seller has provided everything contractually required in the time periods required by the contract. IF anytime within the 17 day contingency period (again, 17 days is the default, it can be changed contractually), the buyer changes his/her mind he/she can cancel the contract and receive a return of their deposit.

Let me know if you have any additional questions.
Web Reference:  http://www.stefanirealty.com
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Keith Sorem, Agent, Glendale, CA
Thu Oct 23, 2008
in California the default period for buyers to carry out investigations is 17 days.
During that period you decide if you really are serious about buying. The seller will still be accepting offers and showing the property.

If you remove the contingencies, then you are committed to buy. If you do not remove them, the seller will ask you to do so, or they may cancel the transaction.

Your Realtor should be answering these questions. IF they don't know the answer, then you should ask their broker.
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