When you look to buy a new home in Delaware, you may find that there are many moving parts involved in the process. Sometimes, you may need to wait for certain circumstances to come to fruition before moving forward with a home purchase, and in this situation, certain real estate contingencies may come into play.
According to NerdWallet, in real estate, “contingencies” are essentially clauses that give you the ability to abandon a deal if certain conditions never come to be. Real estate contingencies help protect your interests and allow you to make competitive offers without assuming a substantial amount of risk Here are some of the most common types of contingencies used in residential real estate.
Mortgage contingencies
Unless you plan to purchase a property entirely in cash, you typically need to have a mortgage contingency in place. This type of contingency gives you an out in the event that you are unable to secure a loan for a mortgage. Mortgage contingencies are generally necessary even if you have pre-approval for a mortgage already.
Inspection contingencies
An inspection contingency gives you a way out if a home inspection winds up revealing substantial defects within the home you plan to buy. This type of contingency may also help you negotiate a lower price or request specific repairs based on what your home inspection turns up.
Home sale contingencies
Many people buying residential real estate utilize home sale contingencies, which dictate that your offer to buy a home depends on you being able to sell your current home first.
While these are some of the most common real estate contingencies, this is not an exhaustive list of all types you may need to rely on.