Purchasing a new Florida home is a great way to build wealth, but if you are not careful during the home-buying process, you may wind up with a money pit. Along the way, you may need to make offers on a contingent basis, meaning you plan to purchase a home if, and only if, specific conditions come to fruition.
According to NerdWallet, contingencies and disclosures, while different, help protect both sides in a real estate transaction. You must work through both before finalizing the sale of a particular home.
Say you want to buy a new property, but you do not have enough money available until your existing home sells. You could presumably make a contingent offer on the home you are eyeing on the grounds that you plan to buy it when your current home sells.
Inspection contingencies are also common in residential real estate. An inspection contingency dictates that you have plans to buy a particular property as long as the inspection does not turn up any major defects. Mortgage contingencies are also common and assert that you plan to buy a home as long as you find a mortgage lender.
Disclosures refer to the things the seller must tell you before you purchase his or her home. If builders constructed a home you are considering purchasing before 1978, the seller must tell you if there is any presence of lead paint within it.
The seller also has an obligation to disclose any relevant information about natural disasters. If the home is in an area prone to flooding or fires, for example, the seller must tell you before the sale moves forward.