Fremont Buyers – Use Contingencies Wisely

Part 2

I have recently had many clients ask about what contingencies are in a real estate purchase agreement and how best to use them so they are protected and get a good deal. So I have put together a series of blogs to explain what they are and the best way to use them.

It is very uncommon to have a purchase agreement in Fremont without contingencies. In fact, contingencies are an essential part of many offers for homes in Fremont. In general, contingencies are added to protect you (the buyer) but may also serve to protect the seller in some cases.

All of the contingencies of a purchase agreement must be met before a Fremont home sale can be competed. In this first series I discussed some examples of contingencies and the most common ones in a Fremont purchase agreement. In this article I will discuss who writes contingencies and who they protect.

Who Writes In the Contingencies?

A contingency is a legal document and must contain the proper language to be legally binding. For this reason, attorneys ideally craft contingencies. However, since this is a normal part of business, many Fremont real estate agents are extremely versed in writing contingencies. In fact, agents may be far more experienced in this area than an attorney. In practice, your Fremont real estate agent will be more than capable of writing the contingencies you need.

Whom Does the Contingencies Protect?

The contingencies noted so far are intended to protect you (the buyer). They allow you to back out of the deal without consequences if something does not work out — you can’t get financing, you discover problems with the house, you lose your job, etc.

As noted, contingencies may also be added to protect the sellers. Such examples are the sellers may insist that the transaction be completed within 30 days. If you are unable to get your cash together or get your financing, you could lose the house and your deposit!

Some sellers may want you to purchase the house “as is.” That is, no matter what’s wrong with it, the sellers won’t be responsible for it. You may for example find that after making an offer, the septic system badly needs $15,000 worth of repair. If you agreed to buy the property “as is” then you will be stuck paying the difference.

Thank you for taking the time to read the information I have made available to you. This information is brought to you by your Fremont real estate expert Clyde Brown.  If you are considering buying or selling property, planning to relocate, looking for Fremont homes for sale, or looking for any other information about real estate in the Fremont real estate market, or the surrounding areas, please visit the most complete website dedicated to everything real estate related www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Bay Area Realtor, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. For all your East Bay cities needs including Fremont, Newark, Union City, Hayward, Oakland, Santa Clara, Milpitas, Dublin, Livermore, Pleasanton, and San Ramon. Clyde Brown Legacy Real Estate & Associates.