When buying a home here in Illinois, buyers will need to make sure that if something goes wrong, they can get out of the deal. This is why contingencies are vital to real estate contracts. These provisions usually outline certain events that could make the deal null and void.
Most Illinois residents will need to obtain financing in order to complete the purchase of a home. If something should happen and a buyer becomes unable to procure the necessary mortgage loan, a contingency in the purchase contract would allow him or her to exit the deal with his or her earnest money. Such a provision could be as specific as the parties need them to be.
If a potential buyer still owns another home, a contingency could be added to the contract requiring that the home be sold before the purchase goes through. If a seller has other offers, he or she may not agree to this type of contingency. In the alternative, the seller may give the buyer a time limit in which to complete the other transaction. Both parties can agree to walk away if the sale of the buyer’s current home falls through. Other contingencies may involve a satisfactory appraisal, inspection and walk through.
When it comes to real estate contracts, the contingencies can protect a buyer from going through with a purchase that is not in his or her best interests. The problem is knowing what provisions to add into the contract. Even though there are several “boilerplate” contingencies put into most contracts, every deal is unique, and knowing what else may prove important could be a challenge. For this reason, many homebuyers make use of the legal resources available to them.