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Contingencies in a real estate contract

You decide to move out of the city of Chicago. You want somewhere quieter, with more space and fresh air. You narrow your options and find a property you can afford in Grayslake. The local school seems nice, and you look forward to taking your kids out on Lake Michigan. As keen as you may be to sign on the dotted line, you need to pause and consider what could go wrong.

When making a real estate contract, you need to include particular clauses called contingencies. If you do not, you could find yourself trapped in a deal for a house you do not want. Do not feel bad about this; the seller may insert some of their own too.

Here are some common contingencies used by real estate buyers:

  • Title: Issues with the title could cause you problems later, so ensure the title is clean.
  • Funding: You need to secure the mortgage before you buy the home.
  • Selling your home: If you already own a home, you will likely need to sell it before you can secure your new one. It is hard to predict how long this will take.
  • Insurance: Failure to get insurance would probably void your mortgage offer.
  • Inspection: Home inspections carried out by experts can turn up hidden horrors. It would be foolish not to reserve the right to back out or renegotiate the price if you find issues.
  • Final walk-through: Your last chance to pull out. It allows you to check that the sellers have not stripped the lights from the front room or ripped out the fitted kitchen and all the appliances you thought were included.

Ensure your new life in Grayslake get off to a problem-free start by contracting the help of an experienced real estate lawyer to create a contract with the contingencies you need.