Key Factors: Purchase Agreements Contingent on Two Items

Purchase Agreements: What Are They Contingent On?

When entering into a purchase agreement, there are crucial contingencies that both buyers and sellers need to be aware of. These contingencies can have a significant impact on the outcome of the transaction and understanding them is essential for a successful and smooth process.

Contingency #1: Financing

One the common in a purchase agreement financing. This protects buyer the that are to a or to the of the. It allows the to out the without financial if are to the within specified of time.

In study by National Association Realtors, found 32% home contracts a financing contingency. This the of this in estate transactions.

Year Percentage Contracts with Financing Contingency
2018 32%
2019 31%
2020 33%

Contingency #2: Appraisal

The second key contingency in a purchase agreement is the appraisal contingency. This allows buyer back the if property for than agreed-upon purchase price. It gives buyer option renegotiate price with seller walk from deal an reached.

In case study by Appraisal Institute, found 10% home contracts an appraisal contingency. This the of this in buyer`s in real transaction.

Study Percentage Contracts with Appraisal Contingency
Appraisal Institute 10%

Understanding the Impact of Contingencies

It`s clear that both financing and appraisal contingencies play a crucial role in purchase agreements. These provide protections both buyers sellers can impact outcome transaction.

By the of these contingencies, parties navigate purchase process confidence ensure successful fair transaction.

Remember, always to with knowledgeable estate professional fully the of in a purchase agreement ensure your protected the process.

 

Contingent Purchase Agreement

In of mutual contained this the hereby agree follows:

Contingent Purchase Agreement
1. Contingent Items
The purchase agreement contingent the two items:

  1. The completion a inspection a inspector within days the of this agreement.
  2. The ability secure for the at rate exceeding 4% within days the of this agreement.
2. Termination Agreement
In that of the items above not either has right terminate agreement penalty liability.
3. Law
This shall by in with the of the of [State], without to conflict laws.
4. Entire Agreement
This the understanding the and all and agreements understandings, written oral, to the of this agreement.

 

Top 10 Legal Questions About Purchase Agreement Contingencies

Question Answer
1. What are the two key items that purchase agreement contingencies are typically contingent on? Well, friend, purchase agreement contingencies often on buyer financing the passing. Two are to sale through.
2. Can a purchase agreement be contingent on the sale of the buyer`s current home? Absolutely! The purchase agreement can definitely be contingent on the sale of the buyer`s current home. This is a common contingency known as a “home sale contingency.”
3. Are any common besides financing inspections? Oh yes, Other contingencies include appraisal, clearance, even seller necessary before closing.
4. Can a purchase agreement be contingent on the buyer obtaining homeowner`s insurance? Indeed it can! The purchase agreement can certainly be contingent on the buyer obtaining homeowner`s insurance to protect their new investment.
5. Is to all in a purchase agreement? It but not recommended. All puts buyer risk potential with or financing.
6. Can a purchase agreement be contingent on the buyer receiving a clear title? Absolutely! It`s for purchase agreement contingent the buyer receiving a clear to the any disputes the.
7. Are there any restrictions on what contingencies can be included in a purchase agreement? Well, my friend, as long as both parties agree, there are typically no restrictions on what contingencies can be included in a purchase agreement. All negotiation!
8. Can a purchase agreement be contingent on the buyer conducting a final walkthrough of the property? Absolutely! The purchase agreement can certainly be contingent on the buyer conducting a final walkthrough of the property to ensure everything is in order before closing.
9. Can a purchase agreement be contingent on the property appraising for a certain amount? Yes, indeed! It`s quite common for the purchase agreement to be contingent on the property appraising for a certain amount to protect the buyer`s financial interests.
10. Can a purchase agreement be contingent on the seller providing a termite inspection? Absolutely! The purchase agreement can certainly be contingent on the seller providing a termite inspection to ensure the property is free of any pesky pests.