During a real estate purchase, most buyers will send in their proposals or offers with contingency clauses. They don’t want to sign any sort of purchase contract without these protections in place.
A common example of this is a property inspection contingency. The inspection has to be carried out before the purchase goes through. The contract is contingent on the property passing that inspection. If it does, then the buyer has to abide by their offer. But if it doesn’t, then they may have the ability to walk away from that offer, ask for updates to the property or offer a lower price.
In some cases, though, buyers will send in offers without contingency clauses. Why do they do this?
Increasing their chances of being selected
This usually happens when the real estate market is competitive. Buyers know that there are going to be other offers. They want to ensure that theirs is the one that gets chosen.
Taking out a contingency clause may make the deal look more stable to a seller. For example, the seller may not think that there are any problems with the property, but they don’t want the deal to fall through because of something unexpected during the inspection. If the amount of money being offered is the same in two offers, that seller may be more likely to go with the offer that does not have any contingency clauses.
Buying and selling
Real estate transactions can become very complex, whether you are buying or selling, and it’s important to understand all of the tools that are available as you navigate this legal process. It can help to have an experienced team on your side as you determine what tactics to use and what steps to take.