Buying or selling a home involves a lot of things, it also raises questions. In this column ‘Ask Bob’, real estate expert/broker Bob Bartikoski of RE/MAX Paradise Homes Bonaire answers a real estate question from a reader. This time:
Question: Can I make an offer with contingencies, such as the contingency that my home in Minnesota sells before I buy a place in Bonaire?
Good question! A contingency in a purchase agreement means that unless a certain action takes place, the purchase agreement is void and the Buyer has no obligation to purchase. The Seller may accept or reject various contingencies. A contingency that a home in another country must sell first is one that will almost certainly be rejected by a Bonaire seller, since there is no guarantee that the home will sell. If your house is currently under a purchase agreement and you are just waiting for the closing date to receive the money, a Seller may be agreeable to a short contingency.
Two contingencies that are more common here in Bonaire are inspection contingencies and financing contingencies. Both will have expiration dates, a typical time frame for an inspection contingency is 14 days from the date of the fully signed purchase agreement. A financing contingency will take longer, usually at least 30 days, because the bank will require the buyer’s financial documentation and a completed appraisal of the property before submitting it to the loan committee for approval.
Remember that the Seller has the right to accept or reject any contingency, since the property is effectively on hold and cannot be sold to someone else during the contingency period. Contingencies are all part of the negotiating process when you make your offer to purchase a house. Your real estate agent can advise you in more detail when you are making an offer.
Please email me directly if you need more information on a specific property at [email protected]. Bonaire: +599-717-7362. Call for free from the US: 1-866-611-7362. See all our listings here.