Information on Buying a home in Columbus and central Ohio, including contingencies.

A contingency is best thought of as a way out of the contract, or a hurdle you must clear to remain in contract. The contract is contingent on something occurring and usually by a certain date.

• Contingent on financing: If you enter into a contract and you have the proper language that makes the contract contingent on financing, then you can cancel the contract, without further liability, if you can not obtain financing. The Seller may limit your contingency to a certain time frame. If you go past that time, then you can not cancel the contract due to inability to obtain financing.
• Inspection Contingency: The inspection must take place within the time period specified in the contract. Usually you not only have to complete the inspection but also finalize the negotiations for repairs within the time allotted. If the contract allotted five days to have the inspection and you waited until the sixth day, you have waived your contingency. No matter what you find during the inspection now, you cannot cancel the contract. Not performing within the time specified can open you to great risks since you have lost the protection of the contingency.
• Contingent on sale of a home: If you a have to sell a home to buy a new one, you would make the offer contingent on selling and closing of the existing house. If a Seller accepts this, they will usually still market the house and if another Buyer presents an acceptable offer, you will have an agreed upon period of time to remove this house-sale contingency. You may own two houses at once or lose the new house. The Seller may accept the home sale contingency but will normally have an "escape clause" which allows them to cancel the contract if they receive another offer that is not contingent on a home sale.
• Contingent on wood-destroying insect inspection: An inspector will look at the house to determine if there are wood-destroying insects. The contract will state that it is contingent upon a "clean" inspection. If wood-destroying insects are found, then you will have to negotiate with the Seller, unless the contract already dictates how this situation will be resolved.
• Contingent on attorney review: This allows an agreed to period of time to have an attorney review the terms of the contract.
• Contingent on a spouse seeing the house: If only one spouse has seen the house, you can request a contingency period that would allow the other spouse to see it, and if they did not like it then the contract would be voided.
• If you fail to satisfy or waive a contingency, you may lose that right or the contract could be voided, depending on how it is worded.