Buyer protection is always built into every purchase contract.
When a buyer goes under contract, there are three periods built into that contract to protect the buyer and their earnest money.
The first period is called due diligence. During this time, the buyer can have the home inspected professionally. After the inspection, the buyer will have a list of items for the seller to repair. That list will be negotiated, and hopefully the seller will take care of all the repairs. If they can’t come to an agreement, the buyer can terminate the contract and get their earnest money back.
The second period is the appraisal. If you’re getting a loan, the home will be appraised. If the home doesn’t appraise for the offer price, the buyer has the right to go back to the seller and negotiate that price. If they can’t come to an agreement, the buyer can terminate the contract and get their earnest money back.
“You can terminate the contract and get your earnest money back during these periods.”
The third period is called the financing contingency. This is when the lender and buyer pass paperwork back and forth until the lender gives them what’s called a clear to close. At this point, we know the buyer is fully qualified and can move forward. If the buyer cannot qualify for that loan and the contingency has not expired, the buyer has the right to terminate the contract and get their earnest money back.
Make sure your agent is working with you and guiding you through the process. If you have any questions or would like us to cover a certain topic, reach out to us by phone or email. We look forward to hearing from you.