Buyer Contingencies in Hawaii Purchase Contracts

🌴Kauai real estate 🌴

Let’s talk about Buyer Contingencies in the Hawaii purchase contract.

📄Our contract has key items that protect the buyers and allow them time to review the property information, documents, and disclosures as well as obtain financing for the purchase. While there can be other contingencies in a contract, below are the key items you are likely to find.

🛠️Inspections

The inspection period is the timeframe in which buyers may hire a professional home inspector, a representative, trade specialists and service providers to assess the condition of the property. 

📄Document Review

There are document review periods that pertain to any prevailing documents, for example, subdivision documents or condominium documents, and on some homes, it would also include solar and alarm system related documents. Properties being sold furnished would include an inventory list with its own review period. For properties that have long-term leases or are vacation rentals, there would also be a review period for those agreements. These review periods are counted from the date of delivery of the documents so they may expire at various times throughout the contract.

📜Disclosure review

For most property sales, the sellers will complete and provide a seller’s disclosure for review. This is an opportunity to review all the information the seller knows and shares about the property. You might find other things you want to add to your inspections or investigate further.

💰Financing (Buyer Obligations)

If you are not paying cash for a property, there are financing contingencies to allow you the time needed to apply, get approvals, and get funding for the purchase. This contingency has multiple parts starting with a pre-qualification letter from a lender. Next up, a conditional loan approval outlining the conditions under which the lender will make the loan and the appraisal. Finally, final loan approval!

💫Other Contingencies

In some circumstances, there may be other contingencies in your contract, like the sale of another property by the buyer before the purchase or finding a replacement property for the seller, and other matters that a buyer (or seller) would want to address during the escrow.

⭐Contingencies are your protection for your earnest money deposit and allow you to thoroughly investigate the property before you are locked in. 

❓Got questions about Kauai real estate? Kelly and Jamie at The Morgan Friedman Team love to answer questions! Reach out and schedule a complementary consultation available via phone online or in person on Kauai. 

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