Contingency Clause

by Prime Radar Team  August 18, 2015

Question:

Hello PRIME! I have been searching for a subdivision relatively close to Ortigas Center as I’ve recently landed a new job. I found some property in an ideal location. The house will need some renovation and the landowner has told me on repeated occasions that he intends on completing this before the end of next month. However, they’re requesting that I purchase the house within the coming week as he’s set to leave the country for two weeks, making face-to-face negotiations impossible. Although I’m interested in the location, and the mortgage rate is ideal, I’m wondering as to whether there’s any technicality I could put into our contractual agreement if the owner doesn’t renovate the house in the said time?

Answer:

Greetings! Before you purchase the property, you should have landowner agree to sign a Contingency Clause in order to prevent any disputes. This would assist you in highlighting your main stipulation needing to be met, in this case renovation, in order for your agreement of purchase to be valid. As a result, if the landowner fails to meet the contractual agreements, you will be relinquished of your leasing obligations if you choose to opt out the agreement.

Tags