BluefoxToday blog : What Are Real Estate Contract Contingencies?

What Are Real Estate Contract Contingencies?

Las Vegas Real Estate residential real estate contracts are usually written with “Contingencies”.  Merriam-Las Vegas HousesWebster Dictionary definition #4 defines contingent best when it is applied to real estate:

“dependent on or conditioned by something else <payment is contingent on fulfillment of certain conditions>”

Disclaimer:  I am not a lawyer, I am just explaining what contingencies I see in real estate contracts.

When purchasing a Las Vegas House, you will have a time frame to fulfill your contingencies.  You will want to make sure:   the home is sound structurally, it is worth what you are paying for it, it is zoned properly, it is in theschool zone you would like, you can live under HOA guidelines, rules and bylaws, you can get your loan, etc.

This time frame to fulfill contract contingencies is also commonly called:  ”due diligence period” or “inspections period”.

Las Vegas Buyer Contingency Examples:

  • Loan or Mortgage
  • Appraisal
  • Home Inspection(s) (Mechanical, Structural, Soils, Fungal, Pest, Septic, Roof, etc)
  • CLUE Report (Insurability)
  • HOA Document Acceptance
  • Sale of Existing Home
  • Preliminary Title Report

Las Vegas Seller Contingency Examples:

  • Delivery of Marketable Title
  • Short Sale Approval
  • Court Approval (usually for Lis Pendens or Probate)

It is always recommended that Las Vegas Buyers & Las Vegas Sellers have an attorney review their contract prior to signing to make sure they are protected in case they cannot fulfill a contingency.  It’s always better to be safe than sorry!


Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

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Comment balloon 45 commentsRenée Donohue • December 28 2010 06:53PM

Comments

I have never seen this before Renee, a feature with no comments! Have you been featuring your own posts??? (Kidding)! And there sure are some tongue twisters in this post and congrats on the feature. And let me know how you get a feature without any comments ...

"What happens in Vegas Stays in Vegas"

Vegas Bob ... ;)

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) almost 8 years ago

Renee - there's some good stuff here. I suspect many buyers and sellers know far less about the contingencies and what this means than should. A well done educationla post. OUr contingencies here in CA are fairly similar.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) almost 8 years ago

Renee

You did a great job of explaining all in very common language people can understand

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) almost 8 years ago

Bob I have seen it many times and I don't know how I got the luck of the draw.

Jeff:  Thanks!  I figure they are similar all around the country.  Will be interesting for others to chime in with some different contingencies!

Tom:  Thanks!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Renee it's a wonderful post and keep them coming young lady and I wish they would draw mine once and while ... ;(

VB ;)

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) almost 8 years ago

You didn't mention the one that's "contingent on the sellers removing snow from the roof so we can do a roof inspection." Must be cuz it's warm out there.

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) almost 8 years ago

Robert:  IDK what to say.  I am not a power here and I do not ask for them, ever!  In fact I have asked to not be featured before.

Eric:  LMAO!!!!!!!!!!!!!!!!!!!!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

@Eric-Renee is one of the few who are very lucky that they don't have to deal with snow:-). Well written blog Renee. Very useful for home buyers and sellers even if you live outside of Las Vegas. Congratulations on the Gold Star. Great post.

Posted by Lanre-"THE REAL ESTATE FARMER" Folayan, I don't make promises.I deliver results.SOLD HOMES (Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC) almost 8 years ago

Man this is scary - I needed this today with my client. Great timing and well written.

 

Your the bomb lady! Your clients are so lucky to have you on their side.

Posted by Billie Hillier, Savvy Home Realty Solutions (http://702IsHome.com) almost 8 years ago

When I was in Real Estate, I actually wrote and got an accepted offer that was contingent that the wife liked the home after a walk thru.

Posted by Greg Miller, Florida Home Loans - Conventional,FHA,USDA,VA (Ruoff Home Mortgage ) almost 8 years ago

YES Renee when ever a member gets featured it's always nice to reply to quite a few comments, it gets over whelming ...

Busy-Busy

 

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) almost 8 years ago

We don't have a seller contingency per se for marketable title.  The buyer has the right to review the prelim.  I guess I just thought of this as part of putting your house up for sale, though it's a valid point.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) almost 8 years ago

I have not seen a CLUES report mentioned in a contract in this area yet.

Posted by Cheryl Ritchie, Southern Maryland 301-980-7566 (RE/MAX Leading Edge www.GoldenResults.com) almost 8 years ago

Lanre:  Once upon a time I did deal with snow and real estate but it was so long ago that I forgot about that, LOL!

Billie:  Thanks for the reblog.  I hope it helps your clients!  See you Thursday for Football & Margs!

Greg:  That is one I forgot about - contingent on interior inspection ;)

Robert:  yes it does and it causes other problems too.

Christine:  Interesting theory!

Cheryl:  It's popular here and IDK why, wasn't back in the midwest!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Renee: good idea for the "explain it to me" series. Each area is different. I spend my life working through contingencies.

This would be a good handout/email/website page if you work with many out of state buyers. Less than an an hour ago I had to explain this to my out of state buyer that the contract is not fully accepted and either side can back out while there are inspection and attorney review contingencies. This is standard for IL, but apparently not in other states they have previously bought in.

Congrats on feature.

Posted by Leslie Ebersole, I help brokers build businesses they love. (Swanepoel T3 Group) almost 8 years ago

I love it when you go into 'teacher mode'.  :)

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) almost 8 years ago

Your welcome - helps me and helps you.

I wish I had seen it before your blog was featured - I would have "suggested it" to get the "Called Shots"  :-)

(Can you let me know next time you write something that is worthwhile so I can call a few shots!!!!)

 

Cheers!


Posted by Billie Hillier, Savvy Home Realty Solutions (http://702IsHome.com) almost 8 years ago

Leslie:  Yep, I am stuck on my first time buyer's guide and had to knock out some basics before I can proceed with the next step of purchasing a home ;)

Virginia:  Do you see how I was responsible and got you re-set up for your listing alerts without you having to remind me?  I hate how they expire!

Billie:  This has been sitting on my wp blog since Sunday.  You can always catch a sneak peek over there you creeper stalker you :wink:

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

I am currently developing a new buyer's website and this would make a great article. Very nicely done.

Posted by Tammie White, Broker, Franklin TN Homes for Sale (Franklin Homes Realty LLC) almost 8 years ago

Renee - Yes, I did, and I owe you 1,2,3.....   I have a 'thank you' in mind. 

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) almost 8 years ago

Renee,

Nice explanation to help first time home buyers.  I always go through contingencies with both buyers and sellers to make sure they understand.  Very well done.

Posted by 1 ~Judi & Don Barrett & Chassy Eastep - Integrity, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) almost 8 years ago

Renee -- an excellent post.  I applaud you for recommending attorneys.  In my neck of the woods this is frounded upon, but I think it is soooo important.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) almost 8 years ago

Its funny you wrote about contingencies because I was just thinking how most agent don't take contingencies very seriously. Its important that all parties remember the whole reason for having contingencies is protect the seller and buyer.

Posted by Patricia Regan (The Regan Team Home Loan Group) almost 8 years ago

Renee - Congrats on a well deserved feature. I knew that the Gods sometimes jump ahead for some posts. I enjoy reading what you post to the public for education. The google juice that you get is amazing and this is a good one for the public to read.

It amazes me how some states differ so.

Posted by Ken Barker Realtor® GRI, E-Pro Certified (Dilbeck Real Estate) almost 8 years ago

Hi Renee -- Your topics, when weaved together, tell a story on how there is much more to real estate than what is presented on the surface, and knowing an exceptionally competent agent makes all the difference. 

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) almost 8 years ago

Contingencies are among of the things that the lay buyer and seller most often do not understand.

Posted by Jim Hale, Eugene Oregon's Best Home Search Website (ACTIONAGENTS.NET) almost 8 years ago

Well written informative blog. Thanks for explaing contingencies in simple and clear terms.

Posted by George Bennett, Inactive Principal Broker, GRI (Inactive) almost 8 years ago

You did a great job explaining things in this blog. Thanks alot. RYAN K

Posted by RYAN Kruithoff - TEAM K, My family Serving Yours! (Five Star Real Estate) almost 8 years ago

As always, a good informative post written by the ShackDiva . . thank you for sharing this with us today

Posted by Fernando Herboso - Broker for Maxus Realty Group, 301-246-0001 Serving Maryland, DC and Northern VA (Maxus Realty Group - Broker 301-246-0001) almost 8 years ago

Thanks Renee! So many do not know or understand contingency and it is so important. Excellent post! Happy New Year!

Posted by Surprise Arizona Realtor Jim Braun Sun City Grand Active Adult Communities, Surprise AZ real estate Phoenix West Valley (Coldwell Banker Residential Brokerage Jim Braun Sun City Grand Az ) almost 8 years ago

Renee, very good explanation of contingencies and excellent post. Thanks.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA almost 8 years ago

Renee, nice job on a good question and answer subject. Excellent information for buyers and sellers in any part of the country who are considering a real estate transaction!

Posted by Russell Lewis, Broker,CLHMS,GRI (Realty Austin, Austin Texas Real Estate) almost 8 years ago

Virginia:  Some day I aspire to a simple spa weekend in Mesquite - and dinner with you!

Joan:  I always recommend attorneys, whether they take the advice or not is a different story!

Chris:  Yes, there is one more simple one coming out and then I can resume my first time buyer's guide (I hope!)

Thanks everyone else for comments!

 

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Renee - I think you covered it quite nicely - nothing to add from Florida other than adding to home inspection (drywall, lead based paint)  Wishing you much success for 2011!

Posted by Petra Norris, Realtor, Lakeland FL Homes for Sale (Lakeland Real Estate Group, Inc.) almost 8 years ago

Renee, great explanation for the consumer.  Sometimes I think we need to give buyers and sellers a dictionary on our first appointment so they will understand what we are talking about.

Posted by Damon Gettier, Broker/Owner ABRM, GRI, CDPE (Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert) almost 8 years ago

Very, very informative, Renee. This is definitely re-blog worthy, as it's clear, concise and the average consumer can actually understand it!

Posted by Aaron Seekford, Ranked Top 1% Nationwide 703-836-6116 (Arlington Realty, Inc.) almost 8 years ago

Renee, this is an informative post...it's offers a clear explanation for buyers and sellers that might not understand that this option is available or that there are time constraints attached. Congrats on the feature....you said it so well no one had anything else to add. 

Posted by Larry Atkins (State Wide Realty Co.) almost 8 years ago
Hi Renee, Few people understand how much the contingencies can change the underlying contract. Hope your 2011 is the best ever!
Posted by Bill Gillhespy, Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos (16 Sunview Blvd) almost 8 years ago

Bill:  Very true!

Larry:  Making me blush!

Everyone else, thanks for the comments!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Great post, Renee.  I find most buyers do not understand contingencies well enough, and a thorough explanation alleviates a lot of apprehension on their part.   

Posted by Barbara Altieri, REALTOR-Fairfield County CT Homes/Condos For Sale (RealtyQuest/Kinard Realty Group, Fairfield and New Haven County CT Real Estate) almost 8 years ago

Hi Renee,  THanks for the nice post today.  Well done!   I've bookmarked it for future reference.  

 

Hope your Holidays are wonderful!

 

Patricia/Seacoast NH & ME

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) almost 8 years ago

Hi Renee,  THanks for the nice post today.  Well done!   I've bookmarked it for future reference.  

 

Hope your Holidays are wonderful!

 

Patricia/Seacoast NH & ME

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) almost 8 years ago

Renee, Congrats on the FEATURE...Great easy to read and understand list!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) almost 8 years ago

Thanks all for the comments!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) almost 8 years ago

Renee,

Good primer even for the seasoned home buyer and seller to know. Contingencies can be thorny indeed.

Posted by Esko Kiuru over 7 years ago

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