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Contingencies to Include in Your House Purchase Contract
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A financing contingency is also common, making the sale contingent upon you, the buyer, securing an acceptable loan or other financing with which to buy the house.
More and more buyers are adding an insurance contingency to their contracts. That's because in recent years, homeowners living in states with a history of household toxic mold, earthquakes, or hurricanes, have been surprised to receive a flat out "no" from the insurance carriers. You can make your contract contingent on your applying for and receiving a commitment in writing. For more information, see Homeowners' Insurance: What You Need to Know.
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Other contingencies are less the norm, and become a matter for negotiation. For example, the seller might ask that the deal be made contingent on his or her successfully buying another house. If you need to move quickly, you can reject this contingency, or demand a time limit. Likewise, you can request that the deal be made contingent on your successfully selling your house.)
Next Step
Put your contingencies in writing, most likely as part of your offer on the house, or as part of the contract that you and the seller agree on. For help, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart.
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