“How does it work if I’m buying a home but cancel because I find a problem with the home or my bank won’t give me the loan. Is that breaking the contract? And do I lose my deposit?”
Answer:
Most contracts have contingencies letting you cancel and get your deposit back under certain conditions.
The 3 typical categories of contingencies are:
1. disclosure
2. inspection & investigation
3. finance
If the seller discloses a problem, if your inspections are unsatisfactory to you, or if you don’t get your loan, you typically get your deposit back…PROVIDED you keep within the agreed deadlines.
Be sure your agent is good with contracts and keeps up on deadlines.
Many real estate agents work hard and are good at finding you the right home. But understanding contracts and being organized are a whole different set of skills that are lacking in many agents, so be careful whom you work with.
Learn Secrets Most People Will Never Know About Buying A Home In San Diego
