How to Complete a Contingency Removal to Release Contingencies
Having to explain how to complete a contingency removal to release contingencies is not a topic I particularly enjoy discussing, but I find writing a blog about such matters can really help increase my efficiency. Instead of trying to compose a lengthy email to a buyer’s agent explaining how to complete a contingency removal, I can just send the agent a link to this blog. I send out links to many articles and blogs I have written to other agents and our clients. It saves enormous amounts of time. I mean, why reinvent the wheel?
Let me preface this by saying I understand how much Sacramento real estate agents hate doing paperwork. Most agents prefer to focus on the people side of things, the fun stuff. This part of selling real estate has not changed over the 40-some years I’ve been in the business. It was that way in the 1970s and probably the same way for decades before that. Paperwork is the bane of existence for many agents. Yet paperwork is what keeps an agent out of court and protects your clients.
I don’t enjoy paperwork anymore than the next guy, but I do it. It’s part of my job as a Sacramento listing agent. Some agents ask their transaction coordinator to prepare this form. That can be dangerous in the hands of the wrong TC.
I’ve written many blogs about the reasons to obtain a contingency release and how so many Sacramento listing agents never ask for these documents. I know, bizarre behavior. Maybe that’s part of the problem, if buyer’s agents are rarely asked for contingency removals, why should they know how to complete them? Well, apart from the little fact that possessing a California real estate license requires them to know.
It seems lately I’ve been receiving a contingency removal with only a few boxes checked under paragraph 2, which can leave my seller vulnerable. Deliberately exposing my seller to risk is unacceptable to me.
How to Complete a Contingency Removal #1 for Inspections
So, here you go. To remove the buyer’s inspection contingencies and leave the appraisal and loan contingency in place, there is an easier way to accomplish that directive.
- Check Box 2B.
- Except appraisal by checking the box for Appraisal Contingency
- Except loan by checking the box for Loan Contingency
How to Complete a Contingency Removal #2 for Appraisal
To remove the buyer’s inspection contingencies and appraisal contingency, you could check the box for appraisal under paragraph 1, but it is more complete to do it another way. This is assuming, of course, the appraisal contingency release date is later than the inspection contingency release date.
- Check Box 2B
- Except loan by checking the box for Loan Contingency.
How to Complete a Contingency Removal #3 for Loan
To remove all contingencies, the form is designed to make it very simple. This is assuming, of course, the loan contingency is the last contingency in the chain of events.
- Check Box 2C.
Sometimes, a buyer is ready to release inspection contingencies except the HOA docs are not yet in escrow. This can happen if a person forgets to order the HOA docs or the HOA company takes longer than usual to submit. There is a provision in the Contingency Removal to except the HOA docs in paragraph 2B while still removing the rest of the inspection contingencies.
Remember, too, if a buyer does not sign a Contingency Removal, the contingencies are not released and that limits recourse for the seller. As a Sacramento listing agent who has fiduciary to her seller, listing agents really aughta demand the Contingency Removal. You don’t want a judge asking why did you sit on your ass and make zero attempt to protect the seller’s interests when you represent the seller in this transaction, do you?
If you’re looking to sell a home in Sacramento, call your Sacramento Realtor Elizabeth Weintraub at 916.233.6759.