How to Remove a Realtor Contingency
When you enter into a contract to purchase a house, the contract typically contains several contingencies that must happen for the contract to be fulfilled. In most cases, a home sale contract includes contingencies on disclosure, home inspection, financing and appraisal. The buyer and the seller must fulfill and remove each of their contingencies for the sale to go through. Failure to do so results in a sale that falls through. Your realtor will help you keep track of each contingency and the time frame in which it should be completed.
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Instructions
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Put an offer on a house and include the contingencies you want in the offer. The seller will either accept your offer, counter it or reject it.
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Read the disclosure written by the seller to find out if the home has any problems. Many of these problems are usually minor, but some of them may require major repairs or signify a bigger problem. Decide if these are issues you can deal with and sign the disclosure if you are agreeable. Signing the disclosure removes the disclosure contingency.
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Hire an inspector to check the home for further problems. The inspector will find any problems not listed in the disclosure and give you tips on what to do to fix minor problems. The inspection is the responsibility of the buyer. A completed inspection removes the inspection contingency.
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Appraise your home for value. Many loan companies will not finance a home for more than it is worth. An appraiser walks through the home and assigns it a fair market value to help with the loan process. The buyer is responsible for the appraisal. Receipt of the appraisal removes the appraisal contingency.
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Inform your finance company that a seller accepted your offer and you need to move forward with the loan process. Submit any additional required documentation. Your finance officer will let you know what is required, such as recent paycheck stubs, bank account balances and credit information. Once the loan officer evaluates your documentation, he approves the loan. Approval of the loan removes the finance contingency.
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Tips & Warnings
Some contracts include other contingencies, such as sale of your previous home, insurance and homeowner's association contingencies. Ask your realtor what steps need to be taken for each additional contingency in your contract and complete the steps in the appropriate time frame.
References
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