If you’re buying or selling property, it’s important to understand how contingency clauses in real estate contracts affect your rights and ability to exit a deal. In San Francisco, high property values leave little room for contract mistakes, which makes careful review and clear deadlines especially important.
In this blog post, you’ll learn about the different types of real estate contingency clauses and why it’s important to work with a professional real estate attorney in San Francisco when buying or selling property.
Real Estate Contract Contingencies Explained
A contingency clause is essentially a legal escape plan for buyers or sellers. Real estate contingency clauses can control things like whether the buyer secures financing, how the property performs during inspections, whether the home appraises at the agreed price, and whether the title comes back clear or not.
Such clauses are common in the majority of residential and commercial transactions in San Francisco due to the complexity of the local market.
Types of Real Estate Contingencies
Contingency clauses exist to give buyers or sellers a legal way out of a contract when certain conditions are not met. The following sections explain the most common types of contingency clauses:
- Financing contingency: The buyer can cancel the contract if they don’t secure loan approval by the deadline.
- Appraisal contingency: Allows the buyer to renegotiate or walk away if the property appraises below the purchase price.
- Inspection contingency: Allows the buyer to cancel or renegotiate if inspections reveal serious problems.
- Title contingency: Allows the buyer to cancel the deal if the seller cannot provide a clear title.
- Home purchase contingency clauses: The buyer can exit the contract if their current home does not sell in time.
Reviewing these clauses and explaining their legal impact is one of the most important real estate attorney responsibilities during a property transaction. If you need help understanding how these contingency clauses apply to your transaction, contact Furukawa Castles Karic LLP for a consultation.
Why It’s Important To Hire a Real Estate Attorney in San Francisco, CA, During Property Transactions
Some of the highest-value real estate in San Francisco sits on properties worth millions of dollars. Many transactions involve luxury homes, condominiums, and commercial buildings where even small contract mistakes could lead to serious financial consequences.
By hiring a real estate attorney in San Francisco, CA, to help you with contingency clauses in real estate contracts, you get clear guidance on what each clause means, how it affects your risk, and when deadlines matter. This professional oversight helps reduce the risk of missed contingencies, lost deposits, and post-closing disputes.
Contact Furukawa Castles Karic LLP To Schedule a Consultation
Contingency clauses in real estate contracts are an important part of protecting buyers and sellers. If you want contingency clauses drafted by local attorneys who understand San Francisco real estate laws, call Furukawa Castles Karic LLP at 415-510-2823 to schedule a consultation with an experienced real estate attorney.
If you’re worried about undisclosed property issues, check out our other blog post that explains what to do when sellers hide defects during a real estate transaction.