~ Colorado Real Estate Contract Contingencies ~
There are several contingencies in the Colorado real estate contract. These contingencies allow for you, the buyer, to get released from the contract and your earnest money returned to you as long as you are within the deadline dates for each of these items. Many buyers often ask before they write an offer to purchase a property, if they would be able to get their earnest money back if something happens and they don't close on the property. My answer is 'yes, but within guidelines.' The following are some of the contingencies in our state approved Colorado Real Estate Contracts.
Inspection Contingency ~ you have the right to do a home 
inspection. If after that inspection, you feel that the property is not in the condition you want it to be in ( and this is subjective), you can notify the seller that you want to be released from the contract. Or you may want the seller to repair or replace things that affect the integrity of the home or for health and safety reasons.
Appraisal Contingency~ your lender normally requires that an appraisal be done. The appraisal is a view of value of the home. The lender will only lend the lesser of the sales price or the appraised price. If the property does not appraise at the sales price of the home or higher, you can get out of the contract, or renegotiate the contract with the seller.
Survey Contingency~ if you have a survey or an Improvement Location Certificate (ILC) done and find that the boundaries are not what was expected or that a neighbors fence or shed has been built on your property, you can get released from the contract.
Title Commitment Contingency~ if you find that there are title issues on the property, ie. free and clear title for the property cannot be obtained, liens that cannot be removed,
Home Owner Association (HOA) Documents Contingency~ if after you receivethe rules and regulations of the community and find that you will not be able to live within those guidelines (no pets allowed, cannot park on the street, the financials of the HOA are unstable, etc.)
Loan Contingency ~ you do not qualify for the loan or the interest rate or terms of the loan are not acceptable to you.
Yes, Mr. and Mrs. Buyer, there are ways you can get out of a Colorado Real Estate Contract due to the Contingencies that are standard within our state approved forms. All of the contingencies do have dates and time lines that need to be followed with all parties acting in good faith. However, consulting an attorney is always advised. A Colorado Real Estate Contract is a legal and binding contract and if broken or not followed, can result in a lawsuit.
If you are thinking about buying or selling your Arapahoe County home and would like to work with an agent with years of experience and understands these contingencies, Dawn Fabiszak is the REALTOR to call.
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