What are some common contingencies that should be included in a real estate purchase agreement?

As a lawyer, it is important to ensure that the purchase agreement for a real estate transaction includes contingencies to protect both the buyer and the seller. Here are some common contingencies that should be included:

• Financing Contingency: This contingency will allow the buyer to back out of the deal if they are unable to secure the necessary funds to purchase the property. This contingency will specify a deadline for the buyer to obtain financing, after which they will have the option to terminate the contract and receive a refund of their deposit.
• Appraisal Contingency: This contingency will allow the buyer to back out of the deal if the appraised value of the property is lower than the purchase price. This contingency will typically give the buyer a specified timeframe to have the property appraised and the option to renegotiate the purchase price if the appraisal comes in low.
• Inspection Contingency: This contingency will allow the buyer to have the property inspected by a licensed professional to identify any potential issues, such as structural defects or other problems. If any issues are identified during the inspection, the buyer may request that the seller make repairs or provide a credit to cover the cost of repairs. If the seller refuses to make the requested repairs or provide a credit, the buyer may back out of the deal.
• Title Contingency: This contingency will require the seller to provide a clear title to the property, free of any liens or encumbrances. If any issues are identified with the title, the buyer may request that the seller remedy the issue or terminate the contract.
• Home Sale Contingency: This contingency will allow the buyer to back out of the deal if they are unable to sell their current home within a specified timeframe. This contingency will typically give the buyer a specified timeframe to sell their current home and the option to terminate the contract if the sale does not occur within that timeframe.

It is important to note that these contingencies may vary depending on the specific jurisdiction and type of property being purchased. It is recommended that buyers and sellers consult with a licensed real estate attorney to ensure that their purchase agreement includes all necessary contingencies to protect their interests.