A repair contingency clause is a part of the agreement between the buyer and the seller of a real estate property. They agree that if repairs are found to be necessary in the home, the buyer can opt to pull out of the sale or can have the seller pay for the repair.
This is a very important clause, especially when shopping for a house that has not been used for a long time. The buyer may not be fully aware at the time of purchase of all the repairs necessary. A repair contingency clause will help to give the buyer peace of mind when purchasing the property.
A contingency is protection against something that is not certain to happen, but can have negative consequences if it does. That’s why this clause is important. When buying a new home, clauses are important to protect the buyer from unwanted expenses.
Importance of a Repair Contingency Clause
Unless you are building your own home or buying a brand new one, this clause is important to protect you from surprises. Repairs to homes that had previous occupants may be very expensive and the seller may not choose to reveal all the flaws of the property at the time of the sale.
This is especially true when buying a foreclosed home, where the previous occupants may not have had the means to make the repairs themselves.
A repair contingency clause will protect the buyer from repair costs that may add up to thousands of dollars. Thus, it’s essential to have this clause in the contract, since it will save you a lot of trouble when purchasing a new home.
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