When you try to buy Tennessee residential real estate, you may need to use certain methods or tactics to protect your interests and make sure things work out in your favor. Likewise, anyone trying to sell a home has to tell you certain things about it to make sure you do not unknowingly buy the residential equivalent of an automotive lemon.
Real estate contingencies refer to offers you might make on a particular property on a “contingent” basis, meaning you put in an offer you plan to move forward with as long as certain conditions come to be first. Real estate disclosures are the specific things the seller must tell you about with regard to existing issues or defects within a home.
Common real estate contingencies
You may need to make a sale-contingent offer on a home if you only have enough money to move forward with the purchase if you sell your existing home first. Similarly, you may need to use a mortgage contingency to make an offer on a home you plan to buy as long as a lender offers you sufficient funding for it. You may also need to make an offer on a home that is contingent on it passing a home inspection, among other possibilities.
Common real estate disclosures
The seller of a Tennessee home has a legal obligation to tell you about any material defects that exist within it that may hurt its value or impact its livability. Foundation, plumbing or electrical issues may all fall under this umbrella.
Ultimately, contingencies give you an “out” if specific circumstances never come to be, while disclosures help ensure you make an educated, informed decision about whether to buy a particular property.