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Contingent Contracts

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Contingent contracts in Texas, like in many other places, refer to contracts where the performance of one party’s obligations is dependent on the occurrence or non-occurrence of a specific event. These contracts are also commonly known as “conditional contracts” because the parties’ obligations are contingent on certain conditions being met. Contingent contracts can cover a wide range of situations, and Texas law recognizes and enforces these contracts under certain conditions.

Here are some key points related to contingent contracts in Texas:

  1. Definition: A contingent contract in Texas is one in which the parties agree that the performance of their respective obligations will be dependent on the happening or non-happening of a specific event. For example, a contract to purchase a property may be contingent on the buyer obtaining financing, or them selling a current property.
  2. Enforce-ability: In Texas, contingent contracts are generally enforceable, as long as they meet the basic requirements of a valid contract. This includes an offer, acceptance, consideration, legal purpose, and certainty of terms. The contingency itself must also be legal and possible to occur.
  3. Common Types of Contingencies: Some common types of contingencies in contracts in Texas include:
    • Financing contingencies: The purchase of real estate is often contingent on the buyer obtaining a mortgage loan.
    • Inspection contingencies: Contracts for the sale of real estate may be contingent on the results of a home inspection.
    • Appraisal contingencies: In real estate transactions, the purchase price may be contingent on the property appraising for a certain value.
    • Contingencies based on specific events: Contracts can be contingent on specific events, such as the issuance of necessary permits or licenses.
  4. Termination of Contract: If the contingent event does not occur or is not met within the specified time frame, the contract may be terminated or become voidable at the option of one or both parties. In some cases, earnest money or deposits may be returned to the buyer if a contingency is not met.
  5. Specific Language: Contingent contracts in Texas should clearly specify the conditions or contingencies, the time frame within which they must be satisfied, and the consequences of non-satisfaction.
  6. Legal Advice: Parties entering into contingent contracts in Texas should consider seeking legal advice to ensure that the contract is drafted correctly and that their interests are protected.

It’s important to note that contract law can be complex, and the specifics of contingent contracts can vary based on the type of contract and the parties involved. If you are dealing with a contingent contract in Texas, it is advisable to consult with an attorney who specializes in contract law to ensure that your rights and obligations are clearly defined and legally protected.

Facts about Real Estate Appraisals

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People buying a home should take the time to learn the facts about real estate appraisals . The purpose of the appraisal is to establish the home’s market value . Lenders don’t want to be stuck with property that is not worth its price tag . Appraisers do not look at dirty dishes or overflowing laundry baskets, they do care about chipped paint and broken windows.

Real Estate Appraisals are a necessary step in the home buying process. There is a lot of confusion out there regarding the truth about appraisals. Some people are confused about their purpose and often think of them as home inspections. Some people think that a low appraisal for their home is the kiss of death. People should take the time to learn the facts about real estate appraisals. The more people learn beforehand, the better prepared they will be to tackle this crucial step.

Your home loan approval is contingent upon the results of the real estate appraisal. It is as simple as no appraisal…no loan. Since very few people have the ability to pay for a house with cash, the appraisal is going to be necessary. A loan is never going to go through without an appraisal. The purpose of the appraisal is to establish the home’s market value. The sales price will be based on the market value.

The main goal of the appraiser is to protect the lender. Lenders don’t want to be stuck with property that is not worth its price tag, so the appraisal must be completed before the lender will approve the loan. The information contained in appraisal is invaluable to the lender. The lender will study the details of the appraisal before reaching a final decision. It makes sense. If they are going to be funding the transaction, they should be aware of the property’s value.

The lender will often dictate the choice of appraiser. It might have one in house or through a contract with an independent appraiser. If you go with your own choice for appraiser, they may be subject to final approval from the lender.

Residential properties are normally appraised using either the sales comparison approach or the cost approach. When using the sales comparison approach, an appraiser compares the property to similar properties that have sold in the area and bases the market value on the comparables or comps. The cost approach is based on the costs to build, which means it is more appropriate for new properties.

The actual appraisal reports are very detailed. They contain information about the subject property along with comparisons of a few similar properties. There is an evaluation of the overall house market within the area. The appraiser will then list any issues that he or she feels might diminish the property’s value.

The next component is a list of any serious problems like bad roofs or weak foundations. The appraiser then gives an estimate of the sales time for the house. Finally, the report will indicate the type of property.

It is important to note that the real estate appraisal is not the same thing as an inspection. The appraiser might make note of any problems they see, but they are not responsible for declaring if your home is in good condition or not. They are only responsible for assessing the property and determining the market value for the lender. A home inspection is a different process altogether.

Real estate appraisals only include the home, the land, and any improvements to the land. It does not cover any personal property that might be sold with the house. The buyers should purchase those items separately.

Everyone fears the possibility of a low appraisal. It happens all of the time, usually during closing. There are some things you can do to remedy this common but stressful situation. The buyer can make a larger down payment. If this is not feasible, the seller and buyer can negotiate the price some more. Additionally, the appraisal can always be disputed.

What all goes into an appraisal? Appraisers are looking at the condition and size of the house, its proximity to good schools, and the size of the lot. Appraisers do not look at dirty dishes or overflowing laundry baskets. They do care about chipped paint, broken windows, and appliances that don’t work.

Appraisals are not being conducted by just anyone off the street. Real estate appraisers are trained professionals licensed by the state in which they work. They are qualified for the work they do by completing state certification requirements like exams and continuing education courses. This line of work demands strong critical thinking skills and the ability to interact with different groups of people.