What is a Buyer Real Estate Contingency

After the contract between buyer and seller is agreed upon, I often get asked by the home buyers and home sellers what do you mean by the purchase is contingent.

Hence, let me explain what a Buyer Real Estate contingency means and how it works.  The dictionary defines the word contingency as "dependent on chance or on the fulfillment of a condition."  In simple terms, a contingency means there is an agreement pending satisfaction of future events.  Consequently, a buyer will purchase a property contingent upon financing and investigation components. 

During the escrow period, the buyer will seek to get a loan and investigate the property in terms of its physical condition, title, insurance, and other factors.  If the buyer purchased the property with the typical California Contingencies outlined in the California of Realtors Association forms and the buyer can't obtain financing or is unsatisfied with the buyer investigations, the buyer can potentially cancel the contract and be refunded their Earnest Money Deposit.  Of course, it is very important that the buyer does not remove their contingencies in writing until after their are certain that they can get the loan and our satisfied with their buyer investigations.

Therefore, in the world of Real Estate, a purchase contract will typically contain buyer contingencies.  These contingencies are designed to protect the buyer and the buyer's Earnest Money Deposit.  For a top producing agent in Ventura County and Camarillo that will protect buyers and sellers of Real Estate contact Dave Crowell, American Dream Realty, 805-300-3345.  Please visit my website at www.mycamarilloproperties.com for more great information about Real Estate.