What IS a contingency: condition(s) that either the buyer or seller (or both) must meet for the sale to go through.
Expanding on the deliberation of our offer details in the previous blog, we must not forget to review the contingencies we asked the sellers to meet before closing. Why? Well, to put in perspective, with a home purchase the buyer is typically in an “if this, then that” mentality. For instance, if the roof needs to be re-shingled, then the buyer can either take care of it, request it to be addressed or lessen the home price. With a land purchase, it’s not about replacing or repairing what is already “there,” one doesn’t know what is “there” because it hasn’t even been done yet and you’re not even sure it can be done in the first place! Nonetheless, most things are achievable if you have enough money and an unlimited budget; but if you’re anything like us (which is ‘on a budget’) then put contingencies/conditions in your offer.
A land survey and a Perc Test were the two contingencies in our offer. From previous dealings and general common knowledge we knew we had to get a land survey, but we didn’t know much about a Perc Test until we talked to our lawyer. I wasn’t familiar with the term and it’s not something that came across our vocabulary often, but bottom line, no perc, no house.
Other items that came up during our research that could be possible contingencies include: asking to drill for water (at your cost and clean up), working with a builder for site and road considerations, and/or having plans approved or reviewed by the local town. These suggestions are possible contingencies but are not all inclusive when looking to purchase raw land. Review your specific needs and desires for the land and/or building, along with the geography of your local area and any other known risks that you could be left with as the buyer.
Tenir Bon House 