Buyer contingencies are typically designed to primarily benefit which party?

Buyer contingencies are provisions included in a purchase contract that allow the buyer to have certain conditions met before they are obligated to proceed with the purchase. These contingencies create a framework intended to protect the buyer’s interests by ensuring that they have the opportunity to back out of the deal or renegotiate terms if specific criteria are not met.

For example, common buyer contingencies include ones related to financing, inspections, and appraisals. If a financing contingency is included and the buyer cannot secure a loan, they can cancel the contract without penalty. Similarly, if an inspection reveals significant issues with the property, the buyer has the right to request repairs or negotiate the sale price based on those findings.

In essence, these contingencies are primarily about securing the buyer’s ability to protect their investment and ensure that they are not left in a disadvantageous position after committing to a property purchase. Thus, the design and intent of buyer contingencies are to benefit the buyer primarily in the transaction.