Those who have already invested a lot in the real estate property business would agree that there are many technical things that need to be studied. While the trade would seem to simply involve buying and selling of properties, there is a lot more that goes on before sale contracts exchange hands. Attention should be paid to the safety of both the buyer and the seller in terms of their rights. Those who are new in the industry would do well to be guided by certain information about the real estate inspection contingency clause.
A real estate business investor could maximize the benefits that he or she could get from the real estate inspection contingency clause if a certain step is taken. This is all about being able to effectively make use of a property inspection contingency clause. Such contingency clauses are important when an individual is in the process of buying a specific piece of property. It is used when the final purchase contract is still in the works. Prior to a real estate inspection, a property buyer must get to know these clauses.
These property inspection contingency clauses are optional, but there’s more value to it than you think. This actually protects the buyer from withdrawing safely from deal when a real estate appraisal or inspection procedure reveals things that would put him or her at disadvantage. A buyer should always look for deals with these clauses already built in as a way to protect him from being pushed into a bad deal. If the deal doesn’t come with it, a request for one is a wise move to make.
One of the most common questions brought about buyers is about who will perform such real estate inspection procedures. It is true that virtually anybody could spot problem areas in a house or structure. However, it is always recommended that only professional property inspectors be tapped for the job. Such individuals are insured and this is where the biggest advantage would come in. If a house turns out to have major defective parts (like needing foundation repair) after it has been certified to be structurally sound by a professional inspector, all the costs needed to cover the repairs would be charged against his or her insurance.
A real estate inspection as required in the contingency clause could be used in two ways by a buyer. As stated above, it allows the buyer to have a “way out” of a deal when such inspections have revealed problems with the property. Of course, this is a great advantage since contracts pertaining to real property transactions are totally binding after being approved by both sides. Another use of these clauses is that the real estate appraisal, when lower than the one given by the seller, could be used as a basis for the renegotiation of purchase fees.
Contingency clauses on property contact deals could also mention something about the factor of a homeowners association. The policies of such bodies, when not favorable to the buyer, could be used as a basis for getting out of a deal. The logic here is simple. Since it will be the comfort and benefit of a buyer which will be affected by such governing bodies, it is just right to include it in the coverage of a contingency clause.
Those who have an existing home which will be sold in order to pay for a new real estate property could also make use of these contingency clauses. This is justifiable when the current real estate appraisal of the new home is higher than that of the old one. It is understandable too that not a lot of sellers would be happy with this. It might take months or even a year to sell the current home as stated in the clause. However, finding a seller willing to agree to such terms is not an impossible thing.
Can a buyer use this contingency clause in case of a pressing need to move in furniture or occupants at an earlier date? Of course, the answer here is yes. The clause could simply state that the buyer will lease out the period on which furniture or occupants would be moved in early. The buyer could bargain for anything that would make him or her benefit from the deal in the long run.
A real estate inspection contingency clause is definitely very useful for the protection of a buyer. Its proper use should be learned and carried out whenever necessary. Real estate property buyers and sellers alike would benefit from it.