VICTORIA BY THE BAY REAL ESTATE-WHAT IS CONTINGENT VS. PENDING
Many clients are mystified by what the difference between a property that is contingent versus one that is pending. Hopefully, I can clear some of that confusion up for everyone. When you as a buyer place an offer on a property and a seller accepts, you are given a certain number of days to complete your contingencies. A contingency can be an inspection, an appraisal, loan verification, etc. Typically in California the purchase contract allows for standard timeframes for each contingency.
Acceptance begins the day after the acceptance date. So if you get a contact back from the seller on May7th, the clock starts ticking on your contingency period begins on May 8th.
LOAN APPLICATION, meaning within seven days after acceptance, buyer must provide seller with a letter stating that they are pre-approved with a lender for the NEW loan amount of the property. This is to be done in 7 days after acceptance.
VERIFICATION OF DOWN PAYMNENT AND CLOSING COSTS, buyer shall provide verification via a bank statement, that they do in fact have the funds needed to close the deal. This is to be done in 7 days after acceptance.
APPRAISAL AND CONTINGENCY REMOVAL, meaning that the offer is conditional on the property appraising at no less than the offer price. If it does appraise lower, you have the right to ask seller to sell it to you at appraised price. But know that they also have the right to say no. This is to be done in 17 days after acceptance.
INSPECTION PERIOD, meaning the time that, you as a buyer have to order, complete and review all inspections of a property. This means, your home inspection, roof inspection, pest/termite inspection and any other inspections you choose to have completed. This shall be completed within 17 days after acceptance.
At the end of the 17 days, if this is the timeframe that you have agreed upon, you will sign a REMOVAL OF CONTIGENCIES, stating that you are satisfied with the condition of the property and are choosing to proceed with purchase. If you want to ask for repairs, you need to do it in this timeframe. Once you do this removal, the property is changed to pending. Pending is the time when go to work to finalize everything and get ready to record your home with the county.
ONCE YOU REMOVE CONTIGENCIES, SELLER RESERVES THE RIGHT TO RETAIN YOUR DEPOSIT.
THIS IS WHY YOU NEED A COMPETENT AND EXPERIENCE REALTOR TO KEEP TRACK OF THIS FOR YOU.
For more information on Victoria By The Bay real estate, please contact via phone, email or text. To see what's for sale throughout Victoria By The Bay real estate, please visit my website at: www.soldbynicole.com and click on search the MLS. If you are looking to sell your Victoria By The Bay home and want to know how much your current Victoria By The Bay home is worth, click on CMA and I will happily provide you with a complimentary, no obligation, "Current Market Analysis" of Victoria By The Bay home. I also write a blog about market statistics for most of the bay area markets. Click here to view my blog: http://activerain.com/blogs/nicolemonary
Comments (0)Subscribe to CommentsComment