The FINANCING CONTINGENCY in an offer is a protection to the Buyer if their financing happens to fall through.
A Financing Contingency allows Buyers to cancel the contract without forfeiting their Earnest Money. If one is not included in the offer, and the Buyer's financing falls through, the Seller can either cancel the contract and retain the Earnest Money deposit as liquidated damages, or return the Earnest Money and sue the Buyer for not performing their duties of the contract. Sellers can also pursue other legal remedies, if they have chosen not to accept the Earnest Money as liquidated damages.
Having a financing contingency included in your offer, means that as long as you work diligently to obtain the loan, if your loan is denied (on or before a specified deadline), the Seller has no recourse against you. You can cancel the contract and your Earnest Money deposit will be returned to you. What a great protection to you!
At Homebuyer Representation, we make sure that almost all transactions involving a loan, have a financing contingency as a part of the contract. Because each transaction is unique, there may be situations where it is in a Buyer's best interest to not have a financing contingency as part of the offer or to choose to include such a contingency with a short deadline. We work to make sure that you are protected as much as possible.
An Exclusive Buyers Agent, working on your side, can help you determine what is best in your situation.
Remember Exclusive Buyers Agents do not list homes and will not ask you to limit your level of representation. They will be 100% on your side during the transaction, representing YOU, negotiating on YOUR behalf and protecting YOUR interests.
- Do you have excellent credit?
- Do you plan to purchase a $400,000+ home within 60 days?
- Do you have a good down payment, or are you paying cash for your next home?
- Do you want an agent on YOUR side throughout your transaction?
- Do you have questions about buying a home in the Salt Lake area?
Don't leave things to chance. Get YOUR OWN agent!
Call or text us at (801) 999-8889 today for a free consultation.
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