Types Of Contract Contingencies For Home Buyers
Contract Contingencies are customary in FazWaz UAE transactions and are no more viewed as dubious as they were many years ago. Contingencies minimize risks for a buyer. However, there are many contingencies that are common to all states. The following are a few of them:
Appraisal
Typically, mortgage approval involves an appraisal to back up the price of purchase. A low appraisal can thwart a sale by impacting negatively on the lender’s readiness to accept the mortgage price.
Home Inspection
A buyer has the right to engage in the services of a home inspector and carry out a complete inspection. If a buyer tenders a request for mending, the seller must get a copy of the inspection carried out.
Wood-Destroying Inspection
A contract should indicate who will pay for the pest inspection and if garages or outbuildings are covered in the inspection too. If dry rot conditions or pests are noted, there might be an extra amount to negotiate.
Roof Inspection
Since some home inspectors will not climb on a roof to carry out an inspection, the buyer would have to hire a roofing company to carry out the inspection. However, be careful about hiring a roofing company that stands to gain by fixing a new roof to conduct an inspection.
Sewer Inspection
Sewers could get blocked, which might make the system crumble and shut down over time. However, it is the responsibility of a plumbing company to insert a camera into the system during the inspection, to check for possible damage. It is advisable to carry out this inspection before buying a home rather than after purchase.
Asbestos, Radon, Or Mold Inspections
Most times, a home inspector will require extra inspections by licensed bodies to check for specific situations like the asbestos, mold, or radon gas. Removing these defects are generally costly.
Homeowners Association Documents
Buyers should get a duplicate of all homeowners’ association documents, paying explicit attention to their reserves. A flaw in the reserves might be a red flag that the dues of HOA might be in line for an increase, or the HOA is in financial trouble.
