Buyers often include contingency clauses when making an offer as a means of protecting themselves. For instance, the buyer may use a home inspection contingency. If the home passes inspection, then their offer stands. But if it fails that inspection, they can walk away without penalty.
In some cases, buyers will remove these contingencies from an offer. Why would they do so if it means they do not have the protections that they otherwise would?
It can make the offer more attractive.
The general goal is to make the offer more attractive to the seller.
Say that a person is selling a house for $350,000. They have two offers that are right at market value and are relatively equal financially.
The first offer has a home inspection contingency clause. This offer could theoretically fall apart if the home inspector finds something unexpected, like mold or water damage.
But the second offer does not have this home inspection contingency clause. If all other things are equal – even if the seller does not believe the home will fail the inspection and does not know of any issues with it – they may be more likely to choose the offer without the contingency clause. Doing so lowers the odds that there will be complications and can increase the likelihood that they will quickly sell their home, which is their main goal.
Moving through a transaction
Contingency clauses are just one part of real estate transactions, making them more complex. Those who are working their way through this process should be well aware of the legal steps they need to take. By hiring a lawyer that specializes in real estate, you can move through such transactions with your interests protected.