If you are working with a real estate agent like me, one of the words that you have heard kicked about is contingency. You may ask what does that mean? Well, Webster defines it as: something liable to happen as an adjunct to or result of something else.
As a buyer there are three contingencies which you must give attention. You cannot ignore them. These contingencies must be met and removed in the 17day period after acceptance of contract. The contingencies are set in favor of the buyer within the time frame. If you cannot meet any one of these contingencies the contract can be canceled within the 17 day period, without loss of your deposit. If you are past the 17days and have signed off all contingencies you will loss your deposit. The California Residential Purchase Agreement states 17days as a time frame, it can be changed within the purchase agreement at the time of contract but not after the agreement has been accepted.
OK, now that I have confused everyone. The contingencies are; 1. Loan. You have to get your loan in place by the 17day. 2. Appraisal. You pay for the appraisal but it is set up by the lender – bank. 3. Buyers Investigation. Do not wait on this. I always set this up first thing. This is when you do all the buyers inspections done. You pay for the inspections, not the seller. As a buyer, if you have any negotiations with the seller, they must be done within the 17day period. Do start on day 15 and think that will be OK, it will not.
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