Detroit Real Estate

Here is some Novi first time home buyer advice about purchase contract contingencies.  In each purchase contract there are clauses relating to conditions, or contingencies, that must be satisfied, each within a certain time frame, in order for the sale to go through. These are the guidelines to which the buyer and seller must stick.  On one side it is legal loopholes that allow you to back out of the contract under certain circumstances. 

Contingencies are a double-edged sword. Some of them are designed to protect you

1. from buying a home that has major inspection issues or being a money pit
2. from being tied to buying a house when you can't get a mortgage
3. from buying a house that doesn't have clear title
4. from buying a house that doesn't meet mortgage guidelines

These purchase contract contingencies protect you when you buy your first home in Novi.  These contingencies let you cancel the contract without penalty. By the same token, of course, the seller is allowed to keep your deposit or hold you to the contract if you don't meet your obligations.

How these Purchase contract contingencies work

We have in our Michigan purchase contracts a inspection contingency.  We usually give the buyer 7 days to get an home inspection.  Then the buyer must decide if they want to void the contract, or ask the seller to repair items, or ask for a price reduction, or accept the house as is.  The buyer has two days to decide this.  Then the seller usually has two days to respond to the buyer.

The common mortgage contingency is that the buyer must apply for a mortgage within five days and have a mortgage commitment within 30 days.  If the buyer can not get a mortgage the buyer can void the contract and get their deposit back.

The title contingency is quite simple.  If the seller can't provide clear title for the Novi home, the buyer does not have to buy the home, the contract can be voided, and the buyer can get their deposit back.

If the house doesn't appraise, or has appraisal issues that prevent the mortgage company from giving the buyer a mortgage the mortgage clause kicks in again.  It allows the buyer to back out of the home purchase if the mortgage company won't loan on the house.

These are all protections for the first time home buyer.  However these Novi home purchase contract contingencies all have time lines.  If the home buyer doesn't meet these deadlines then the seller can enforce the contract and/or keep the earnest money deposit.

 I hope this Novi first time home buyer advice about purchase contract contingencies has helped you.

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