Your first Boston real estate purchase is both exciting and complicated. Many first- time homebuyers get lost in the excitement of touring Boston homes for sale. To avoid making a decision you regret, it’s important to be well-informed. Contingencies are an important component of this process that every potential buyer should be aware of. These conditions must be met for the purchase contract to become binding and for the transaction to proceed. Contingencies provide a safety net for buyers, allowing them to renegotiate or even walk away from a transaction under specific conditions without losing their deposit.
Here are 10 of the most common contingencies you should know about in order to empower you with the knowledge you need to protect your interests. Most importantly, even if you choose not to utilize these tips, you will be making better-informed decisions on your journey to owning your dream Boston home.
1. Financing Contingency
A financing contingency allows the buyer to cancel the contract without penalty on a Boston home for sale, should you not be able to secure a mortgage for the property. The usual financing contingency period is from 30-60 days, this is the period after the buyer has received the pre-approval but before the bank issues a commitment. During the 30-60 day period, the bank gathers more documentation from the buyer to make sure they are qualified, as well as more information about the property including an appraisal. After this period, if the buyer is unable to obtain the mortgage, the buyer would receive a full refund of the earnest money deposit. As for any contingency, the buyer and seller must agree to the terms of the contingency during the offer stage.
2. Home Inspection Contingency
As a result of this contingency, a certified, third-party inspector will provide a detail-oriented inspection to ensure that any structural or systemic issues in your potential Boston real estate purchase (ex. electrical wiring, plumbing) are…