21 Mar Ottawa Real Estate Home Buying Contingencies
Ottawa Real Estate Contract Contingencies
Contingencies are an important part of the real estate transaction process that every Ottawa home seller should understand.
Often times, contingencies also mean that Ottawa home buyers will get back any earnest money deposit as well after they cancel a contract.
Thus, contingencies can prove to be a nightmare for home sellers because they may cause a deal to fall through at the last minute.
As I’ve said before, knowledge is power on the Ottawa housing market, so today I’d like to explain to you a few different types of contingencies so that you’re prepared in the event that you encounter one on the Ottawa real estate market.
Different Types of Contingencies on the Ottawa Real Estate Market
Here are just a few of the types of contingencies you may encounter as an Ottawa home seller:
- Appraisal: When a buyer gets a loan, the lender requires that they pay for an appraisal on the property. Sometimes, buyers receive a low appraisal back.
- Home Inspection: To ensure they know exactly what they’re buying, most home buyers will hire a home inspector to look for any issues with your home. Sometimes, the buyer will issue a Request for Repair, based upon the results of that inspection.
- Loan Contingency: Even if a buyer has a loan preapproval letter, that loan may fall through before closing time.
- Lead-based Paint: All buyer have 10 days to inspect for lead-based paint, according to federal law.
- Inspection for Wood Destroying Pests: To see what’s covered under this contingency, check your contract. The contract should also specify whether the buyer or seller pays for this inspection.
- Roof Inspection: Since many home inspectors do not walk on the roof during inspection for liability reasons, some buyers hire an independent roofing business to conduct that part of the inspection.
- Sewer Inspection: Buyers may also hire a plumbing company to see how badly clogged or damaged your home’s sewer system is.
- Early Occupancy Agreement: Sometimes buyers will make a sale contingent on a written agreement that allows them to rent your home before to the close of escrow.
- Homeowner Association Documents: Sellers should provide buyers with all homeowner association documents so that they can approve them prior to closing.
- Sale of Their Existing Home Contingency: This is a fairly common contingency. Buyers who have an existing home may add a contingency that they will not close on your home until they sell their current home. In this case, sellers often set a deadline. After that deadline passes, sellers have the option of canceling the contract with that particular buyer.
Sell Your Ottawa Property Quickly
There are plenty of more contingencies that can be applied to Ottawa real estate but I just wanted to make you aware of the more common ones.
As your Ottawa REALTOR, I work hard to provide home sellers like you with the information they need to enjoy a successful outcome on the local housing market.
While you’re at it, you may want to check out all of the Ottawa home selling tips I offer online.
Until next time,