The Purchase Contract
May the seller refuse a mortgage-contingency rider or an inspection-contingency rider?
Yes. Sellers are not required to accept any of the buyer-protection riders we've discussed. However, as a general rule, most sellers will accept these and similar riders unless they are selling in a very hot market.
Sellers should ensure that the proposed interest rate is reasonable, based on current rates, and also allow a limited but reasonable time for the mortgage commitment. Similarly, most sellers accept an inspection rider but should make sure that this rider expires relatively quickly—say, ten days from signing. Unlike a mortgage commitment, there's no reason that an inspection can't be done within a week or so.
>>What is an offer to purchase?
>>What might I include in my offer to purchase a home?
>>What is earnest money?
>>How is the offer negotiated?
>>How does an offer relate to the purchase contract?
>>Can oral promises constitute a contract?
>>When should we involve a lawyer?
>>What are the key provisions of the purchase contract?
>>What is an inspection rider?
>>What is an attorney-approval rider?
>>What is a mortgage-contingency rider?
>>May the seller refuse a mortgage-contingency rider or an inspection-contingency rider?
>>What happens to my earnest money deposit if we do not complete the sale?
>>Can a buyer sue a seller for backing out of the contract?
>>Are there any special considerations when you are buying a home from a builder?
Practical Law Home | Buying or Selling a Home | Basics of Buying a Home
Basics of Selling a Home | Why Real Estate Is Covered By Special Laws | Real Estate Brokers
*The Purchase Contract* | Financing a Home Purchase | The Closing | The Fair Housing Act
Where to Get More Information