Four Must-Look-Out Seller Contract Deadlines

 

Among other terms, below are 4 primary contract contingencies established between you and the other party to look out for.

Cash or Financed Transactions

  • Inspection: Upon completion of property inspections within inspection period established between seller and buyer, buyer may withdraw/renegotiate their offer based on inspection findings without risk of losing escrow.
  • Clean Title: This is a seller contingency. So as long as seller provides clean and marketable title, buyer cannot utilize this contingency to withdraw/renegotiate their offer based on title findings without risk of losing escrow.

Financed Transaction Only

  • Appraisal: Upon completion of appraisal within appraisal period established between seller and buyer, buyer may withdraw/renegotiate their offer should appraisal value come in below purchase price without risk of losing escrow.
  • Letter of Commitment (LOC) or Loan Guarantee: Buyer must provide LOC to seller within LOC period established between seller and buyer in order to withdraw/renegotiate their offer based on buyer’s lender’s ability to guarantee the loan without risk of losing escrow.

More Tips?

Leave a Reply