Why You Need Contingencies When Buying Property in Ohio

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Whenever you buy property, it is very important that you add contingencies to your Real Estate Purchase Agreement (“Agreement”). Doing so can provide you with added safeguards and flexibilities so that when unforeseen events occur, you will have legally valid grounds to terminate the Agreement.

In this article, we’ll explore why you need contingencies and considerations for doing so. (If you’re buying a home and want to speak to an attorney, click here.)

Contingencies to Consider When Buying a Home in Ohio

When purchasing a home, buyers particularly need contingencies relating to financing. In the event your lender turns down your home purchase lending request, you may need added flexibility. It is equally important that you add contingencies as to terminate the Agreement in the event that the home does not meet your standards upon inspection.

If the seller is agreeing to provide you with all of the appliances, equipment, and fixtures in the home, it is essential that you add a contingency that effectively transfers to you absolute full title to the assets (free and clear) of all liens as part of the purchase price.

You also need termination contingencies for the deed, zoning restrictions, deed restrictions, survey maps, and land surveys that do not meet your standards.

Example Home Buyer’s Contingencies

For your consideration, below are some example contingencies that may be helpful in the creation of your Agreement. Please keep in mind this is not a full and extensive list of all of the contingencies. This list simply offers a few examples of the most important contingencies that we recommend. (Note: Before you sign anything, make sure you’ve had your contracts reviewed by an experienced real estate attorney. Click here to chat with our firm.)

Here are some example contingencies:

A. Contingent upon all appliances, equipment, fixtures, and intangible assets transferring to the Buyer at closing. The instruments shall effectively transfer to the Buyer’s absolute full title to the assets free and clear of all liens and encumbrances as part of the Purchase price.

B. Contingent upon review and acceptance of the deed and zoning restrictions, covenants, and easements, as determined in the Buyer’s sole and absolute discretion.

C. Contingent upon review, acceptance and confirmation of all appropriate inspections, land development surveys or studies, survey maps, deed restrictions and plats to the Buyer’s complete satisfaction as determined in the Buyer’s sole and absolute discretion.

D. Contingent upon review, acceptance and confirmation that the home is zoned for residential use to the Buyer’s complete satisfaction as determined in the Buyer’s sole and absolute discretion.

E. Contingent upon the Buyer being able to obtain suitable financing within thirty (30) business days to the Buyer’s complete satisfaction as determined in the Buyer’s sole and absolute discretion.

F. Contingent upon Buyer obtaining possession of the property on the closing date.

G. Contingent upon Buyer’s inspection and review of the home and all inspections requested by the Buyer to the Buyer’s complete satisfaction as determined in the Buyer’s sole and absolute discretion.

H. If any of the above contingencies are not agreeable to the Buyer, Buyer shall notify the Seller within thirty (30) business days and shall have sole and absolute discretion to terminate this Real Estate Purchase Contract.

Buying a Home? Talk to the Pros

Our team has helped countless home buyers in the Columbus, Ohio area. If you’re looking to purchase a home or are currently in the negotiation process with a seller, feel free to contact our firm. We’re happy to help in any way that we can.

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