Real estate is notorious for having jargon that can be baffling to anyone outside the industry. One very common topic that comes up when buying or selling homes is real estate contingencies. These important provisions of a contract provide terms that can be crucial to protecting the interests of both the buyers and the sellers. This article will explain not only what they are, but also will detail common real estate contingencies, how they are used, and important strategic considerations related to them. Although focused on California real estate, much of the content here will be relevant to buyers and sellers throughout the country.
Most people do not give much thought to common real estate terms – until they decide to list their home or make an offer on one. Suddenly, you are catapulted into a world filled with all kinds of terminology with sometimes perplexing meanings and definitions. To make matters worse, most real estate agents are so used to common real estate terms, they throw them around in a rapid-fire fashion. What might be common terms to the agent are often not so common for the client. As a buyer or seller, it’s easy to get lost in the terminology. Being lost is not a good place to be in a real estate deal. Fear not! I will cover six common real estate terms that should help better prepare you to navigate your real estate journey.