Tag Archives: real estate transactions

Do You Know What Your Contingency Is When Buying Or Selling Your Home ?

When you are buying real estate or if you are selling real estate whether it be a home or some land etc.  It is normally and hopefully done with a contract.  Real Estate transactions come with lots and lots of paper.   Under contract law, a contingency provides a party whether that be the buyer or the seller a stipulation to the contract that certain things must happen first before they are bound to the contract.   This is what is know as the contingency period.




noun: contingency; plural noun: contingencies


a future event or circumstance that is possible but cannot be predicted with certainty.

Knowing when your contingency period expires is very, very important because this is time you have to make sure that there is nothing to keep you from closing on the transaction.  When making an offer on a house you give a deposit with your offer.  Prior to the contingency period you can cancel for any reason without losing your deposit.  But once you sign off on your contingencies which is “release of contingencies” then it will and can cost you, your deposit.

Also keep in mind that if you happen to be the seller and you sign off on all contingencies you may not have a deposit to lose.  But you did sign a Real Estate contract and the buyer does incur costs in buying your home.  Such as giving notice or a rental truck or what ever it may be.  Lets say that after releasing all seller contingencies you change your mind to sell the home.  The buyer can possible pursue court actions against you for any losses that they may have incurred.

Release of contingencies is very important to know prior to that no money really lost, and either party can back out of the transaction.  After the release the contract does become more binding and someone may lose some money for backing out.

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What If Bought A Home And Defect Not Disclosed And Did Not Use An Agent

Betty asks…

What rights does a home buyer after closing?

We bought a house that was for sale by owner and we came without a real estate agent. Since buying the house we have had several major repairs ( that repairmen indicated were a result of ongoing problems).  Can I request that the seller pay for repairs since they didn’t provide a disclosure statement?

admin answers:

You need a Real Estate attorney.

I know that there are Real Estate transactions that occur without an agent.  Usually its because the seller does not want to pay the commission involved in paying the real estate agent.  Since it typically falls on the seller not the buyer.  But an agent looks out for you in the transaction making sure all disclosures are signed and that all information that should be disclosed is disclosed, and that is considered material.   This is not to say that there are not Real Estate agents that do not bend the rules or just try to close the deal, and that there is never an issue when doing a transaction with an agent.  No matter what occupation, you will always have some bad apples in every industry.

As for your situation typically, failure to provide such a disclosure entitles a buyer to a specific remedy,  but a lot of that may be dependent on what you signed in your contract and what you may have agreed to prior to closing.   You need to get with a real estate attorney and see what remedies are available to you.

The “problems” may be the responsibility of the former owner regardless of the Disclosure issue. If you are to make out a claim against them, you’ll probably need to prove four things ( so see a local attorney):
1. Did They KNOW about the problems ?
2. They intently not tell you ?
3. Was there no way for you to know otherwise without them telling you?

Good LUCK !!



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