In the next day or so I’m going to be putting a deposit on a pre-foreclosure from a wholesaler. I’ve visually inspected the house from the inside and outside and it looks good, but I’m not anywhere close to being a great home inspector.
The seller says I can have “contingencies” to get my deposit back. I’m going to have a lien contingency and do a title search. In addition to that what other normal contingencies should I have? (fyi- it’s a wood frame home, but is stucco’d from the ground up so I can’t see the condition of the underlying wood)
" THIS CONTRACT IS SUBJECT TO A CLEAR AND MARKETABLE TITLE FREE AND CLEAR OF ALL LEAINS AND ENCUMBERANCES FROM BUT NOT LIMITED TO , CONTRACTORIAL, FINANCIAL,ANY CITY ,STATE, OR LOCAL GOVERNING BODY (CODE) INCLUDING UTILITY" <---- THIS CLAUSE EXACTLY AS WRITTEN IS A MUST in every one of my contracts!!! ;D
Make sure that you have a contingency subject to an inspection by a qualified/certified/licensed (each state is different) inspector.
Based on the inspector’s findings, you can sort out the nit-noid stuff from the show-stoppers.
Keith
You can also add an attorney approval rider if you want to have your attorney review. It’s usually 5 days. Then you can still get out of it even after it is executed… with good reason. But don’t use it if you don’t need it.