Failure to Include Other Contingencies in the Offer to Purchase or Purchase and Sales Contract

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An Offer to Purchase contract written from the buyer’s perspective should have numerous contingencies in it to protect the buyer. The Purchase and Sales Agreement will have some contingencies carried over, as well as additional legal conditions.

Depending on the buyer’s circumstances - The Offer to Purchase should be subject to:

• Engineer/property inspection
• Other structural and mechanical system inspections
• The Purchase and Sales Contract should be subject to:
• Obtaining financing and mortgage commitment
• Bank appraisal equal to or greater than purchase price
• Receipt and approval of a property condition disclosure completed and signed by seller,
  if applicable
• Sale of a property owned by the buyer or pre-closing possession by the buyer, if applicable
• Part of the negotiating process should include the buyer asking for certain contingencies and changes or additions to the so-called standard language.

Contracts are between buyers and sellers. Each has the right to add or change language, as they deem appropriate. Many buyers (and agents as well) don’t know what language to change or add or what contingencies to ask for. And relying on attorneys to include proper contingencies may not result in the best solution either. Attorneys know legal matters; they generally aren’t real estate experts. They may not know what a property is worth, what the condition of the property is, or what contingencies are appropriate in a particular situation.

In my opinion, having a professional, knowledgeable true buyer’s agent helping you may be the only way to make sure you are protected.

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