In competitive housing markets, it can be tempting to do just about anything to get a seller to take your offer. Many times, buyers will add contingencies in the contract to entice sellers. However, it’s important to understand how contingencies work and how they affect your rights as a buyer during the transaction. When buying a Florida home, here are some of the contingencies to be aware of:

Inspection contingency

When buying a home, it is within your rights to have a licensed home inspector conduct an inspection within a pre-determined time frame after you sign the purchase and sales agreement. This usually happens within a week of signing the deal. Once the inspection is done, you’ll be presented with a detailed report about the state of the house. If there are any repair needs or upgrades that need to be taken care of, you can inquire about them and ask for a resolution from the seller.

The seller can agree to make the repairs, propose a cash payment as a counteroffer, or may even choose to not make the repairs. If they turn down the latter, then it provides an opportunity for the buyer to opt out of the sale.

Financing contingency

A financing contingency stipulates that buyers must be able to secure financing prior to the completion of the sale of a property. Without this, the sale cannot be finalized. If you’re unable to obtain a loan, this clause provides protection for buyers from having to pay out-of-pocket for the home. This way, you won’t be solely responsible for coming up with the money needed for buying it.

House-sale contingency

If you’re selling a home and buying a new one at the same time, a house-sale contingency is worth considering. This clause allows you to back out of a purchase if your home hasn’t sold yet. It’s excellent protection for you as a buyer to allow you to back out of the sale without losing any of your earnest deposit money. 

Contingencies can help you save money and time if something in the process goes awry. If you’re buying a home in Florida, talk to your real estate agent about contingencies and whether to include them in your purchase agreement.