Aim High Properties, LLC

Aim High Properties: Can home sellers avoid contingency clauses in contracts?

Contingency clauses to avoid if you are looking for a quick sale

Home sellers often find themselves in situations where they want to dispose of a property quickly. A traditional contract has certain contingency clauses that allow buyers to back out of an agreement if the seller doesn’t meet certain conditions. This can derail a home seller's plan to sell a house quickly. What are these clauses? And can home sellers avoid these clauses from being included in the contract? Aim High Properties, cash buyers in Cinnaminson, investigate what these contingency clauses mean for a home seller who wants to sell a house fast.

Standard contingencies in most real estate contracts

Contingency clauses in an agreement are written for various needs or concerns. If the conditions of the contingency clause are not met, the contract becomes null and void, and one party (most often the buyer) can back out without legal or financial consequences. If the conditions are met, the contract is legally enforceable.

Title – Property liens, ownership disputes, or so-called “title defects” can prevent a home's resale if not addressed. Before closing, a title search can be done by a buyer, buyer’s attorney, or a title company to see the history of the house ownership. This title contingency in a contract puts the onus of resolving any title issues on the seller and gives the buyer the liberty to walk out of the agreement if the title defects are not resolved.

Inspection – An inspection contingency or “due diligence” contingency is a buyer’s right. Buyers can have an inspector examine a property’s interior and exterior, including the electrical, plumbing, structural, and HVAC elements, within a specified time period. This contingency clause protects the buyer from unpleasant surprises after purchasing a property. After viewing the inspection report, buyers can back out of the deal if there is an issue with the property, or they can request a concession or repairs. If the seller refuses, the buyer can back out of the deal and take back the earnest money. This means a seller needs to look out again for another buyer.

Appraisal – Typically, a loan is approved after the appraisal of the house the buyer plans to buy. This contingency ensures a property is valued at a specified minimum amount; if it isn’t, the contract can be terminated. In many cases, the earnest money is refunded to the buyer.

Mortgage – This contingency is very common as it allows buyers time to apply and obtain financing for the purchase of the property. This contingency clause allows the buyer to walk away from the agreement if the mortgage is rejected. This contingency will specify the number of days the buyer has to obtain financing, failing which the buyer can terminate the contract by that date or request an extension. After the given date, the buyer automatically waives the contingency and becomes obligated to purchase the property—even without a loan.

Sale of another property – Usually, buyers sell an old property to buy another one. Buyers may, therefore, insist on a contingency that they can sell their old property before buying the new one. This is a contingency that sellers avoid most because if they fail to sell the old house, they can back out of the contract and recover their earnest money.

These contingencies protect the buyer, not the seller. The traditional broker-managed real estate contract will include the contingencies mentioned above. It is unavoidable. However, this can seriously delay the sale of a home. The only way to avoid a contract with contingencies is to find cash buyers such as Aim High Properties, who pay cash for houses. Sellers can sell their homes as-is and quickly, without any contingencies.

Why Aim High Properties, LLC?

With its extensive knowledge of the business, a network of resources, and years of expertise, Aim High Properties have been helping homeowners with a variety of real estate problems. Why should home sellers choose Aim High Properties?

A one-on-one relationship with customers to handle their unique situations
Ability to directly purchase homes and make cash offers
It offers an extremely fast, and hassle-free transaction
Purchases property as well as sells homes now to buyers

Besides these advantages for home sellers, Aim High Properties also offers wholesale property deals and investing opportunities for private money lenders. It also partners with agents to discover the best property deals.