Word of the Month: Contingency
This week, Erik and Randal discuss a term that is thrown around a lot in real estate, contingency! Thanks to Tanya for this viewer write in the suggestion!
Erik: Welcome to Stay Focused, Focus Real Estate's weekly video blog. This week we have another exciting episode of our word of the month.
Randal: This month, our word of the month came from Tanya who actually responded to last month's word of the month. I don't remember what that was, what do you think it was?
Erik: I don't know but we appreciate your comments.
Randal: But we appreciate you giving us some feedback, and please ladies and gentlemen give us feedback any time. But this month it is ...
Randal: Contingency. Contingencies are most often protections for a buyer in an offer process, whereby they say, I want to have a home inspection contingency and if the results aren't what I expect or like, then I have an opportunity to renegotiate or walk away.
Erik: Right. So the big contingencies are usually ...
Randal: Home inspection.
Erik: Home Inspections.
Erik: Mortgage contingencies. The buyer's going to apply for a mortgage, they're going to intend and they're going to do their due diligence to get that mortgage, but if there is some unforeseen condition that arises, they can't get their mortgage, then they have a provision that they cannot go forward with the contract.
Randal: When you come into talking about contingencies, what they really do is create certainty for buyers and protections for buyers and they often create uncertainty for the seller. So that's how the different sides of a transaction will view contingencies. So, it provides a little more certainty for buyers, a little more uncertainty for sellers.
Erik: Hopefully this helps you understand the word contingency as we use it in our real estate contracts on regular basis.
Randal: And if you would like some more information on the origins of the word, both late and early Latin, let us know, and we'll send you some fun word page.
Erik: Again, thanks Tanya for suggesting the word of the month and we appreciate everyone tuning in and watching.
Randal: And until next time, don't forget to like us on Facebook.
Erik: and subscribe to our YouTube channel.
Randal: Stay Tuned and Stay Focused.