Spaces - Real Estate Transaction - Mortgage Contigency

The mortgage contingency is often key to a successful transaction.  This is provides that the buyer will obtain a mortgage for a set amount, down payment,  rate and duration by a particular date.  That date is usually the amount of time that the buyer and their bank has determined it will take to confirm all the details of their financing.  The buyer, and their attorney, must notify the seller if the date cannot be met, and request an extension of this date.  With no notice the contingency is waived.   If the buyer cannot get the financing described, the seller can find a commitment for them, in a specified time frame.   To show that they have the ability to meet this contingency, buyers provide letters of pre approval from their banks.   To a seller the best offer does not have this contingency, and would be a cash offer. 

Spaces - Real estate transaction contingency 1

One of the common contingencies to an offer to purchase a property is for an inspection.  This is generally done by a licensed inspector hired by the buyer to take a more detailed look at the property.  The inspector spends time testing the mechanical aspects of the property and looking for any safety or heath defects that should be addressed before changing ownership of the property.