When you’re selling your house, the last thing you want is for the buyer to cancel the contract and walk away with their earnest money. It can leave you feeling helpless and uncertain about the fate of your home sale. So, what’s the point of earnest money anyway? Let us explain. Earnest money serves as a show of GOOD FAITH from the buyer. Essentially, it is a deposit on the purchase. However, buyers can cancel the contract and get their earnest money back under certain circumstances. In today’s blog, we’ll discuss the details of why and when buyers can cancel in Arizona.
One of the most common contingencies in Arizona real estate contracts is the INSPECTION CONTINGENCY. Here’s what you need to know:
This contingency allows buyers ample opportunities to cancel within the inspection period, creating uncertainty for sellers.
Buyers can still cancel if you decline to make REQUESTED REPAIRS:
Depending on your response to repair requests, buyers may choose to cancel.
Buyers who are financing their PURCHASE need an appraisal:
If the market conditions don’t favor it, buyers might choose to cancel due to a low appraisal.
The loan contingency serves as the final safety net for buyers FINANCING their property purchase::
This clause provides a last-minute out for buyers, which, while crucial for them, introduces a significant element of uncertainty for sellers. The loan contingency can be a source of anxiety, especially as the closing date nears:
Sellers need to be aware of this contingency’s implications and prepare accordingly.
To ensure your home sale goes through, consider having BACKUP OFFERS:
Backup offers keep the process moving towards closing, providing a safety net in case the primary buyer cancels.
In conclusion, understanding the contingencies that allow buyers to cancel in Arizona is crucial. These contingencies introduce uncertainty and potential cancellations into the home selling process. To mitigate these risks, having backup offers in place can be a smart strategy, ensuring that your home sale progresses smoothly! Even if the primary buyer decides to cancel.