Updated about 9 years ago on . Most recent reply
Multi Family Contingencies
Hello BiggerPockets Peeps,
Quick question, when buying a buy and hold property what would be some basic contingencies you would want to include in the contract?
Most Popular Reply
@Jacob Goodall Below are three fairly common items. I left out the financing contingency, which is also fairly common, due to the current market environment and seller reaction to this contingency in today's competitive environment.
1. Buyer has final approval of any new or changes to rental agreements, service contracts, or leases between Ratification Date until closing.
2. The Due Diligence Period referenced in the Purchase Agreement shall begin once Buyer receives all of the requested information.
3. Buyer has the right to extend the date for closing of escrow by releasing to the Seller until closing through escrow an amount equal to one-quarter of one percent of the purchase price for each 30 day extension requested, to be applicable to the purchase price, with Buyer to maintain at all times the current deposit, as set out in the Purchase Agreement, with Closing Agent.