Contingency clauses can be incredibly helpful in real estate transactions. As we recently discussed, they are a form of protection for the buyer. The transaction itself is contingent upon certain qualifications being met.
For example, perhaps there is a loan contingency. The buyer can make an offer, but if they do not get final approval from their mortgage lender, they are not obligated to buy the house. Another example is a home inspection contingency. If the home fails the inspection, then the potential buyer has the option to walk away.
That being said, buyers do sometimes have the option to remove these contingency clauses. They are not obligated to include a loan contingency or a home inspection contingency. Real estate purchase offers and contracts can be written in a variety of different ways.
Why would this be helpful?
In most cases, it is wise for buyers to keep their contingency clauses. These are an important form of protection and can help things go smoothly. A buyer does not want to be obligated to purchase a property if they are not able to get the loan.
But in some cases, it can be helpful to remove them because it makes the offer more attractive. This is usually true in a competitive real estate market. If a seller is more likely to accept an offer without contingency clauses, removing them can help that offer stand apart when there are many similar offers on the table that still contain these contingencies.
This is not to say that you should remove contingency clauses from your offer, but simply that it is important to understand how these contracts work and what legal options you have when buying or selling real estate.