|
You should insist on having at least two particular contingencies in your contract - two grounds based upon which you can back out of the transaction within the first days or weeks of escrow. The two contingencies you should insist on having in your contract are the loan and inspection contingencies. The loan contingency allows you to be certain that your lender's underwriter will approve of all your documentation and your property (including its HOA, if applicable), and make a final commitment to fund the loan. The only hypothetical situation which eliminates the need for a loan contingency is one where you are paying cash for the property.
The inspection contingency is the one which allows you to back out of the deal if you are not satisfied with the results of your investigations into the condition and insurability of the property. Unless you are ready, willing and able to buy the property at the price and terms of the original property no matter what condition it is in (e.g., a brand new home with comprehensive builder's and home warranties, or a home you knew was a teardown at the outset), you need this contingency for at least as many days as it will take you to have the necessary inspections, and read and review the inspectors' reports.
|
