Buying a home can be a complex affair but it is important to remain calm and follow the appropriate steps. One of those is to put contingency clauses into the contract before you agree to buy.
Contingencies allow you to back out without penalty if specific issues crop up. Here are three to consider:
1. A funding contingency
How will you pay for this property? Will you have to sell your current one first? Will you need to secure a mortgage? Will you need the promotion your employer talked about to secure that mortgage?
You might think you can afford this property, but until you have all your chips in place you cannot guarantee that. The buyer lined up for your house might pull out. The lender might change their offer or your boss might decide to fire you instead of promote you. All could leave you unable to pay for the property, so a clause to allow you to withdraw if this is the case is crucial.
2. An inspection contingency
The house might look in decent condition to you, but all sorts of horrors could lurk within its walls, from leaking pipes to toxic gases. You need to commission a home inspection to understand the true condition of the property. Only then can you decide if the purchase is worth purchasing.
3. A title contingency
Many properties have some sort of issue with the title, be it an outstanding dispute with the neighbor over the fence line, a lien for unpaid work, or a battle between siblings over who rightfully inherited the place. Discovering these now allows you to avoid making those problems your problem. If they are easily sortable, you can ask the owner to fix things. If not, you can pull out of the deal and search for somewhere else.
Buying a place to live is a major investment, and appropriate legal guidance can increase the chances it turns out well.