Five Common Contingencies in Real Estate

As a Realtor, we deal with contingencies in contracts every day. As a consumer, you may or may not be aware of these contingencies. Contingencies are provisions that must be met for the property transaction to be completed or the buyer is entitled to terminate the contract and receive their earnest money back. They are critical in our contracts and in protecting our clients.

The most well-known contingency is the home inspection contingency. This gives the buyer the right to have the property that they are purchasing professionally inspected and request repairs and/or a credit from the seller by a certain date. The home inspection is typically completed during the due diligence period of a purchase and sale agreement.

Another popular contingency is the appraisal contingency. This allows the buyer time to have the property appraised by a neutral third party, typically the buyer’s mortgage lender’s appraiser. If the appraisal comes back lower than the sales price or with required repairs, the buyer may negotiate with the seller to handle such requests during the appraisal contingency.

The financial contingency protects the buyer should they not be approved to obtain a mortgage. An example of this would be the buyer losing their job during the financial contingency. The buyer would be protected and would receive their earnest money back in this situation.

Perhaps the most important but least talked about contingency is the title contingency. You cannot sell a property without clear or good title. There is a pre-written language in our Georgia Association of Realtors (GAR) forms that allows the buyer to examine title and terminate the contract, without penalty, should there be any issues. Most sellers will try to resolve any issues with title to push the transaction through. However, this is not always possible. An example of this would be a property owner, recently divorced, that has unpaid spouse support or alimony to their former spouse. I have seen this hold up contracts before when it cannot be resolved.

A home purchase is the largest financial investment most people make. When purchasing real estate, it is essential that you have a well thought out plan, with contingencies in a contract, to protect you. Many issues can be discovered throughout the course of a transaction, and you need to protect yourself. I highly recommend working with an experienced Realtor to do so.

Jess Barron is an Associate Broker with Lindseys, Inc. Realtors and former President of the Newnan-Coweta Board of Realtors. n

MLS #10120310

MLS #20005781

24+/- ACRES ON POPLAR ROAD AT YEAGER ROAD INTERSECTION. Already zoned C-6 with water and sewer. Ideal for multiuse development. $7,000,000 for all or will consider subdividing front 5 acres for $500,000 per acre and back 19+/- acres for $250,000 per acre. Frank / Chip.

HURRY ON THIS 14.41+/- WOODED ACRE TRACT ON US HWY 29 approximately 5 miles north of Newnan! 819.25’ Road frontage. Small pond. Ideal for development, church, school, estate size lot or possible subdivision. $599,900. Frank / Chip.

MLS #10110852

2 VACANT BUILDING LOTS IN WEST COWETA COUNTY with county water and electricity available. Country setting on East Coggin but easy access to Newnan, Franklin, and Carrollton. $60,000 per lot. Frank and Jess.

MLS #10021670

12 CHOICE BUILDING LOTS IN GRANTVILLE. BULK SALE ONLY. Easy access to I-85, Atlanta, Newnan, LaGrange and Columbus. Seller will only sell as a bundle, not individual lots. $420,000. Frank/Jess.

LOTS/LAND

3 VACANT LOTS IN ASHLEY WOODS. Subject to Covenants & Restrictions of record. Nicely wooded lots. No HOA. Possible bsmt lots. Lots 15, 16 & 17 are available for $29,900 each. Frank.

MLS #10110540

NEW CONSTRUCTION IN NEWNAN! 4BR/3BA CRAFTSMAN style ranch on 1.57+/- Ac w/easy access to downtown Newnan & I-85. Open floor plan in quiet rural setting. Bldr is offering $2,000 in closing costs & an interest rate buy down w/preferred lender. Estimated completion – March 2023. $420,000. Jess.

MLS #10094129

POTENTIAL COMMERCIAL LOT in choice Highway 34E Corridor! Excellent opportunity with high traffic count. Easy access to I-85 and Peachtree City! $49,900. Jess / Frank.

SOLD! SOLD!

MLS #10119008

GREAT OPPORTUNITY IN HISTORIC NEWNAN! Level

SITE OF PROPOSED NEW INTERCHANGE ON I-85 NORTH OF NEWNAN 255 Acres on I- 85 North of Newnan. Between 2 Industrial parks, 27-acre Lake. All utilities available $70,000 per acre Frank owner/agent.

MLS #10101800

109 RESIDENTIAL LOTS IN MANCHESTER, GA! Manchester city water, sewer & electricity available. Schools nearby! Walk to downtown Manchester. $30,000 per lot. BULK SALE ONLY. Frank/Jess.

LOTS/LAND

2 WOODED VACANT LOTS in West Coweta on East Coggins Road. Easy access to Newnan, Franklin or Carrollton. $60,000 per lot. Frank/Jess.

RESIDENTIAL LOT ON BERRY AVENUE IN TOWN. All utilities available. $29,900 Frank.

6.47 ACRES ZONED GENERAL COMMERCIAL! Convenient to Hwy 34 Bypass & downtown Newnan. Great opportunity for many potential uses. New Price $499,000. Frank and Chip.

LOTS/LAND

12 CHOICE BUILDING LOTS in Grantville. Easy access to I-85, Atlanta, Newnan, LaGrange and Columbus. Sold ‘as is’. $420,000 Bulk Sale Only. Frank/Jess.

Residential Lot within walking distance to Atkinson Elementary and Newnan High School. Build your dream home! $85,000. Jess. SOLD! SOLD!

AMLAJACK 255.5+/- ACRES WITH HALF MILE FRONTAGE ON I-85 between 2 industrial parks. $17,890,600. Frank.

VACANT LOTS IN ASHLEY WOODS SUBDIVISION. Subject to Covenants and Restrictions of record. Nicely wooded lots. Possible basement lot. Lots 15, 16 & 17 are listed and priced individually at $29,900 each. Frank.

NEW POPLAR

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