What is a Contingency?

Another definition.

While writing an offer to purchase a Saline home or condo, many times I have been asked "What is a Contingency?" Today I'd like to explain that term.

If we look only at the Dictionary definition, you'll find the following"

1.	dependence on chance or on the fulfillment of a condition; uncertainty; fortuitousness: Nothing was left to contingency.

2.	a contingent event; a chance, accident, or possibility conditional on something uncertain: He was prepared for every contingency.

3.	something incidental to a thing.

Each of these definitions comes close to what we mean in the business of Real Estate, but not quite. Here's how I generally explain a contingency to my clients.

A Contingency in an offer to purchase real estate means "I'll buy your real estate IF..."

In general, the following contingencies are typical in an offer to purchase a Saline home or condo:

a. Financing (in other words, I'll buy your real estate IF my mortgage is approved."
b. Contractor's inspection (in other words, I'll buy your real estate IF I am satisfied with the outcome of an inspection of your real estate by a competent inspector).
c. Radon inspection (in other words, I'll buy your real estate IF I am satisfied with the outcome of an inspection for Radon gas in your home or condo).
d. Lead-based paint inspection (In other words, I'll buy your real estate IF I am satisfied with the outcome of an inspection for lead-based paint in your home or condo).
e. Attorney review
1. Of the contract language (In other words, I'll buy your real estate IF my attorney approves the language of the purchase agreement).
2. Of the title evidence (In other words, I'll buy your real estate IF my attorney approves the title evidence provided by your title insurance company).
3. Of the condominium or Association documents (in other words, I'll buy your real estate IF I my attorney is satisfied with the language of the condo or Association documents that you provide).
f. Well and septic inspection (in other words, I'll buy your real estate if YOU provide the necessary County certifications of your septic system operation and the safety of your well water).
g. Sale of my property (in other words, I'll buy your real estate WHEN I have successfully sold my own real estate first).

I could write a book about my experiences with each of these contingencies! Let's just say that you want a seasoned professional in your corner when you write an offer to purchase any real estate, to make sure that your interests are protected throughout the process.

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If you have questions about your specific situation, or if you're considering buying a Saline home or condo, you owe it to yourself to take advantage of my experience in the Saline market. I'd be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, "Vance (at) SalineMichiganRealEstate (dot) com".

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