Financing contingency protects you should you fail to get a mortgage after you have made a purchase offer. The contingency informs the seller that your purchase offer is good as long as you can get the necessary mortgage.

You can't be sure that you will get a mortgage even if your credit rating is good. The appraisal may come in low, or you may incur a last-minute debt. You may lose your job unexpectedly. All of these problems can make the lender reject your loan and complicate your home purchase endeavors.

The title of a real estate property is a bundle of rights that a property owner or owners have on the property. Other parties in addition to the legal owner may have a claim to a property. You have to deal with such claims if you buy such a property. Apart from third-party liens, here are other issues that may cloud a property title:

• Disputed boundaries
• Errors
• Unknown easements
• Forgeries

Such issues may cost you time and money to resolve. A title contingency allows you to back out of the deal and avoid the issues if you unearth a complication with the title.

A home inspection is an integral part of the home purchase process, and a home-inspection contingency is one of the most common purchase contingencies. The home inspection, which a professional home inspector carries out, involves the examination of the condition of the property.

The inspection involves critical parts of the home, such as the heating and cooling system, foundation, roof, and plumbing system, among others. Imagine how much you would lose if you couldn't pull out of a deal to buy a home with a roof that can collapse at any time. A home-inspection contingency ensures that you never have to get to that point.

You may need a home-sale contingency if you want to sell your current home and use the proceeds as part of the purchase for your next home. In such a case, a complication arises if you start the two processes (sale and purchase processes) concurrently but don't sell your home as fast as you thought you would.

For example, you may fail to sell your home in time if you are in a buyer's market where the supply of homes for sale exceeds the demand for homes. You may also fail to sell the home if you discover hidden damage at the last minute. In both of these cases, a home-sale contingency allows you to pull out of the homepurchase process without breach-of-contract accusations.

Lastly, you should also consider what would happen if you bought a home but then failed to secure homeowners insurance for it. Maybe the home is in a dangerous location, has deteriorated materials due to old age, or has a long list of homeowners insurance claims.

Not many people would be happy to buy a home that insurance companies can't cover. An insurance contingency allows you to walk away from the purchase of such a home without complications.

Kisner Law Firm can help you buy a house safely and avoid all the potential complications. We can also help you deal with complications that have already arisen. Contact us as soon as possible so that we can help you protect your home-purchase investment.