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Include this contingency in a residential real estate contract

On Behalf of | Apr 1, 2020 | Residential Real Estate

Buying a home here in Delaware should be an exciting and joyous experience. It can be, but there are still numerous items to address before the deal can close. One of them is making sure the home does not have any significant defects that could end up costing buyers in the future. For this reason, they ought to seriously consider a home inspection. However, more than that, they should consider a home inspection contingency in their residential real estate contracts.

Once a buyer and seller enter into a contract, the parties are bound by it, which is why the buyer may include certain contingencies that allow the buyer to renegotiate or walk away from the deal if something goes wrong. Popular ones include financing, title searches and home inspections. A good home inspection can reveal issues with the electrical, plumbing and HVAC systems in a home. They can also reveal the need for repairs in the foundation, the roof or the exterior walls.

It is not difficult to imagine that any problems with these systems and areas of the home could be costly and time-consuming. The question is whether those costs should fall on the buyer. Many Delaware homebuyers would agree they should not be responsible for making or paying for these types of repairs. The parties can either renegotiate the price of the home to allow the buyer to make the repairs, require the seller to make the repairs or back out of the deal. Without this contingency, these options may not be available.

A residential real estate contract is like any other contract in that each party is obligated to fulfil his or her obligations. Otherwise, one party could take the other to court for breach of contract. Including contingencies for issues such as a home inspection provide some recourse for the buyer when the home is not what it appeared to be when the offer was made.

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