Every firm has a library of prewritten contingencies to include when they draft offers for buyer clients. Sometimes a contingency that starts with one firm gets picked up and repeated in the next drafting of another company’s addenda. A flaw in the initial version infiltrates the contracts of the copy cat firms. The chances of the flaw being corrected are directly related to the probability that someone will read the contingency with a critical eye.
Listing agents see offers from multiple firms. When you have ten offers on one property you can expect to see at least three versions of an inspection contingency, two appraisal contingencies, three radon testing contingencies, a couple of modifications to the financing contingency, and a variety of random contingencies for the buyer to complete due diligence.
Do listing agents read the contingencies of each offer, every time, before they present the offer to their home selling clients? Some do. Rarely have I met a REALTOR who is in the business of real estate because they love contract work. For some reason, this contract dependent field is loaded with contract averse practitioners.
Protect Yourself. Poorly written contingencies put you in a bad spot when the problem they created comes to a head. At Essential Real Estate we make it our business to know the terms of every member firm’s contingencies. Our clients reap the benefits our knowledge and they avoid the headache of being trapped in a flawed contract.