Buying a home in New York requires a significant investment. So, you want to make sure you are doing your due diligence and getting all the necessary information before making things official. Complications often arise throughout the home-buying process, and you may need to take steps to protect yourself, your finances and your interests along the way.
According to NerdWallet, you may hear the terms “contingencies” and “disclosures” throughout the home-buying process. What do these terms mean, and how do they help you when buying a home?
Contingencies
Contingency clauses are provisions in a real estate contract that give you a way out if certain specific terms never come to be. You may wish to move forward with buying a particular property as long as you get adequate funding for it. Under these circumstances, a mortgage contingency clause may meet your needs.
If you want to buy a home as long as your existing property sells first, you may want to make an offer contingent upon your own home selling. An inspection contingency is another common contingency clause that protects you if the home you have your eye on does not pass inspection.
Disclosures
The home seller has a legal obligation to disclose certain things about a property, such as whether it has any major defects. The seller must also tell you if there is any lead paint within the home, or if the property exists in a flood plain. He or she also has an obligation to share whether there are any major issues with mechanical systems, utilities or water drainage. The seller must also share information about any damage caused by smoke, moisture, fire or pests, among other disclosure obligations.
