The simple answer, a contingency allows for a downtown Boston condo buyer to cancel their contract to purchase without penalty, allowing them to get their earnest money deposit back without any penalties.
The two main types of Boston real estate contingencies are:
- Home Inspections
- Finance (Obtaining a mortgage)
A home inspection contingency is a clause added to a real estate contract during an offer to buy a home. When an offer to buy is contingent on the results of the home inspection, it means a homebuyer can cancel the sale or try to negotiate repairs based on the results of the inspection
In a home sale and purchase agreement, financing contingency refers to a clause that expresses that the offer is contingent on the buyer securing financing for the property. A financing contingency provides the buyer with protection from potential legal ramifications in case the deal fails to close.