Before your buyer signs the contingency removal, several things should be accomplished. Be sure to create a checklist for yourself to ensure the following are complete;
1-All required disclosures for the property have been received, reviewed AND signed off by the buyer.
This MUST be done for paper trail purposes. Two years from now when you are in front of Judge Judy, it's not going to matter that you did deliver the documents to the buyer prior to the contingency removal but did not get them signed until after!
2-All reports generated received, reviewed and signed off by the buyer.
Ditto scenario above
3-All inspections that the buyer wants completed on the property have been done.
Once the contingency is removed, the seller no longer has an obligation to allow inspections on the property NOR negotiate with the buyer for additional repairs!
4-The buyer has had ample time to review the reports prior to removing the contingency.
No handing the report over to the buyer and asking him to remove the contingency at the same time. The California Purchase Agreement Contract allow buyers 5 days (template) to review received reports prior to removing the inspection contingency!
4-Repair requests have been negotiated and agreed upon by both parties.
Drives me nuts when I see a buyer's agent in the middle of repair negotiations remove the inspection contingency. What is the seller's motivation to do any of the repairs at this point? He can now say no and the buyer is obligated to continue on with the sale.
5-The buyer is comfortable and willing to proceed with the transaction based upon the condition of the property and any repairs the sellers has agreed to complete.
It important to ask this question when discussing the inspection contingency removal with a buyer. Ultimately, it's up to the buyer to decide whether they want to buy the property or not.
Confirming completion of these tasks will keep you out of the courtroom and ensures your buyers are continuing on the transaction with eyes wide open.
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