The Power of Contingencies
Contingencies can be useful when writing a real estate contract. They are designed to allow you to walk away from a deal, without penalty, if certain conditions are not met. For example, you decide to sign a contract on a apartment building, but make your obligation to close contingent on items such as:
(1) Being able to secure a mortgage loan of at least 75% of the purchase price.
(2) Having a contractor inspect the condition of the apartment building and your satisfactiion with the final report.
(3) Having an environmental survey done to assure yourself that there are no potential environmental hazards.
(4) Having specific areas or items within the apartment building remodeled or replaced to your satisfaction.
A qualified real estate attorney can help you put the right contingencies in the contract for your deal. The bottom line is that you know which items/issues need to be addressed before the final contract can be executed. It is these issues that will probably make up your list of contingencies.