Posted On: Monday, January 23, 2012 - 5:46am | Posted By: Diane Hourany
Topics: Buyers and Sellers | Tags: appraisal, contingencies, earnest money, initial deposit, inspections, insurance, removing contingencies
Your offer has been accepted for your dream home and you're in the escrow period, during which the lender processes your loan and you conduct your inspections of the house. Once the lender has approved your loan, the appraisal has come in at the price you paid, and the inspections have passed your test, it is time to remove the contingencies.
Step 9: Remove Contingencies - Prior to closing, all of the contingencies of the Purchase Agreement must be met. I will coordinate the removal of these contingencies and review all documents with you. Each one of these contingencies can have a different deadline to meet, and some can have the same. Typical contingencies include:
- Approval of the seller’s transfer disclosure statement and all disclosures
- Approval of the preliminary title support
- Loan approval, including an appraisal of the property
- Physical inspections of the property
- Pest inspection
- Acquisition of homeowner’s insuranceOnce your contingencies have been removed, you have no more safeguards to cancel the contract. If you decide to cancel the contract after you have removed the contingencies, the seller has the right to go after your 3% deposit. It is very important that you are certain you want the house before you remove your contingencies!