Contingency Clauses
Specify financing, appraisal, and inspection contingencies with clear deadlines and conditions for release or termination to protect the buyer.
The addendum clarifies buyer protections, allocates risk for inspections and financing, and sets enforceable deadlines that support a cleaner closing process and reduce later disputes.
Typical parties involved include the buyer, the buyer's agent, and often the seller or seller's agent who must approve the changes before they are binding.
Real estate attorneys may be engaged for complex addenda; ensure all signing parties receive the same final version to avoid conflicting terms.
Specify financing, appraisal, and inspection contingencies with clear deadlines and conditions for release or termination to protect the buyer.
Identify deposit amount, where funds will be held, conditions for forfeiture, and timing for release at closing or termination.
Describe agreed repairs, seller credits, or set inspection remedies and define acceptable documentation and completion timelines.
Set the closing date, possession date, and any prorations for taxes, utilities, or association dues to avoid post-closing disputes.
Include any seller concessions, included appliances, or unusual conditions such as short-sale contingencies or leaseback terms.
State who must sign, how acceptance is communicated, and whether electronic signatures are permitted under the agreement.
Addendum attached to purchase offer; effective date starts clock.
Buyer inspects property within specified days and requests repairs or credits.
Buyer secures loan approval or waives financing contingency by deadline.
Appraisal completed; unresolved repair items negotiated or credited accordingly.
Lender issues clear-to-close once conditions satisfied under addendum.
Buyer confirms property condition per agreed repairs or credits.
Funds exchanged and deed recorded per addendum instructions.
Any agreed post-closing obligations completed on schedule.
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