Part 3 - Contract Contingencies

Contract contingencies would not be necessary if all buyers paid cash (did not need to have a mortgage) and, if all properties were in perfect condition. Since nothing is certain in the world of mortgages or the condition of the property, buyers are able to reduce their risks with inspections. Sellers approve of all the proposed inspections and representations before signing the Agreement.

This section of the Agreement covers 10 paragraphs (#8 – #17) and 402 lines (#79 to #481). This is the longest part of the Agreement. The mortgage explanation (Para 8) is the most detailed and longest paragraph. Both parties must pay attention to all the terms and conditions in this critical area. The mortgage commitment is usually the last to be satisfied.

Buyer Must Take Action

The buyer always initiates the agreement and states the terms to be part of the contract when signed by the seller. The seller must insure the buyer is able to complete the transaction financially while tolerating these inspections listed in the following paragraphs:

• 8. Mortgage Contingency
• 9. Seller Representation
• 10. Waiver of Contingencies
• 11. Property Inspections
• 12. Inspection Contingency
• 13. Notices, Assessments and Municipal Requirements
• 14. Condominium/Planned Community
• 15. Titles, Surveys and Costs
• 16. Maintenance and Risk of Loss
• 17. Home Warranties

Return From Part 3 - Contract Contingencies To Agreement of Sale