Your guide to common closing terms
A contingency is a provision in a real estate contract that can make the contract null and void under certain circumstances. These may include a negative home inspection, a low appraisal, or a failure to secure financing within a specific timeframe.
Dependent on specific circumstances or occurrences, for example, a contingent offer. The sale of a property may be contingent on a satisfactory appraisal or home inspection, on the approval of a mortgage, or on the sale of a prior, existing property.
What is a contingent offer? An offer is considered contingent if it is signed and offered with one or more contingencies attached to it. Contingent offers can only be finalized once the terms of the contingency are satisfied.
A purchase and sales agreement (PSA) lays out the terms under which a buyer and seller agree to the purchase of a property. It is a form of a contract that includes the rights and obligations of both parties, including the financing, timeline, and recordation requirements.
What is a declaration of homestead? A declaration of homestead is a legal document that exempts a portion of a property's value from foreclosure by a creditor. Homestead exemptions are available in 27 states and are designed to preserve family homes in the event of monetary reverses or the death of the head of the household.