Title insurance is boring, but Allied Title & Escrow is here to decode the jargon and make it (somewhat) more interesting. This biweekly feature will explore the mundane (but very necessary!) world of title insurance while sharing interesting stories of two friends’ entrepreneurial careers.
What does a contingency period mean? This week, Kim and Hope Peele of The Peele Group at McEnearney Associates help explain contingency periods and how best to navigate them in a competitive real estate market.
Like any industry, real estate has a ton of lingo that isn’t common to most people. To me, it’s incredibly important that someone who is buying or selling a home has all of the information and resources that they need — before the stakes get high!
When I am working with both buyers and sellers, some of the most frequently asked questions are about contingency periods. These are lengths of time written into the
contract in which one of the parties has the option of voiding the contract, without penalty.
Of the many different types of contingencies, some are more common than others — so here is a quick guide to the top three contingencies that I am asked about most often.
Inspection Contingency — In some home sale contracts, there is an agreed upon number of days in which the buyer can hire a licensed inspector to examine the home
for defects. Sometimes the contract allows for the buyer to void during this contingency period, and sometimes there is also the option to negotiate repairs with the seller. If the buyer chooses to either negotiate or void, they must provide the seller with a report from a licensed inspector. In a hot “seller’s market” buyers can sometimes make this period very short, or even waive it altogether, to appeal to the seller.
Financing Contingency — This contingency protects the buyer in case something happens to their loan. Changes in things like employment and credit could potentially
put the loan in jeopardy. If there is any risk of this happening, it is important to have this contingency in place so that the buyer is not bound by the contract terms. Depending on where the buyer’s loan is in the pre-approval process, on occasion this can be confidently waived.
Appraisal Contingency — An appraisal contingency gives buyers security in case the appraisal from the bank does not come in at the contract price. The bank wants to know that the loan they are approving is worth it — so, if they conduct an appraisal that values the property less than the contract price, the buyer either needs to make up the difference or come to an agreement with the seller. Without an appraisal contingency, the buyer is responsible for what they agreed to in the contract — with or without a loan.
An appraisal contingency protects the buyer in case the bank will not allow the loan to go as high as the contract price.
Each buyer and seller should work closely with their Realtor to decide what is best for them in each particular situation. To learn more about contingencies, and to discuss your real estate goals, reach out to Hope Peele at 703-244-6115 or [email protected].
Have questions related to title insurance? Email [email protected]. Want to use Allied Title & Escrow when you buy a home? Tell your agent when you buy a house to write in Allied Title & Escrow as your settlement company!
Good Friday evening, Arlington. Today we published 6 articles that were read a total of 14680 times… so far. 📈 Top stories The following are the most-read articles for today…
Police issued a traffic ticket every six minutes, on average, during an enforcement effort in front of Nottingham Elementary on Thursday afternoon.
Police swarmed the Rosslyn neighborhood after an alleged thief led an officer on a brief foot pursuit.
It’s holiday time and the lights are coming on in Arlington. Over the next several weeks, a slew of tree lightings, Santa visits, markets, and holiday celebrations are happening around…
Hello Everyone -You are invited to the final meeting of NAACP Arlington Branch NAACP for 2022When: Dec 12, 2022, 07:00 PM Eastern Time (US and Canada) Topic: 2022 General Membership Meeting – NAACP Arlington BranchRegister in advance for this webinar:https://us06web.zoom.us/webinar/register/WN_xGl7wD59R8Cu94elw4bAqQAfter registering, you will receive a confirmation email containing information about joining the webinar.7:00 pm Meeting Opens7:30 pm Installation 8:00 pm Presentation/Q&A; by Dave Schutz on Ranked Choice Voting 8:30 pm Final Remarks and Comments by Newly Elected Members9:00 pm Meeting Adjourns Installation Official Robert N. Barnette, Jr. President, Virginia State Conference NAACP The President of the Virginia State Conference NAACP will serve as the Installation Official and provide remarks for our newly elected officers at the general membership. NAACP Arlington Branch Election Results President- Elect: Michael Hemminger 1st Vice President-Elect: James Younger 2nd Vice President-Elect: Bryan Coleman 3rd Vice President-Elect: Lorelle Langhorne Secretary-Elect: Wanda Younger Assistant Secretary-Elect: Kathleen McSweeney Treasurer-Elect: Adriana Spain Assistant Treasurer-Elect: Kenya Pennington Executive Committee-Elect: Nadia Conyers, Kellen MacBeth, Karen Nightengale Their terms officially begin January 1, 2023. 3rd Monday of the month meeting date changed due to the festival observance of Hanukkah
Join us December 10 & 11 for our Annual Handmade Holiday Workshop Series. We have a myriad of fun and festive programs from linoleum block wrapping paper printing and buttonhole book making workshops led by Eliza Clifford to a meditative grid workshop and Calligraphy Card Making with Anjelika Deogirikar. Join these wonderful artists and get creative this holiday season!
Join us as we celebrate the holiday of Chanukah! Enjoy delicious Latkes, hot cocoa, donuts and more!
Clarendon Menorah Lighting and Community Celebration
Experience the festival of lights!!
*Lighting of a giant 9 foot Menorah