OfflineHello All,
I was wondering what kind of contingencies should I put in a offer/purchase contract if myself or an end buyer use CASH. I mean, shouldn't I protect myself even though they provide me with a POF letter, what if something happens and they can not buy the property. If anyone can help thanks in advance.
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"I used to say, "Things cost too much." Then my teacher straightened me out on that by saying, "The problem isn't that things cost too much. The problem is that you can't afford it." That's when I finally understand that the problem wasn't "it" - the problem was "ME!"--Jim Rohn
You should ALWAYS use a contingency, that is my recommendation! Even more so when making all cash offers. You run the risk of being sued to perform if you back out or don't close on the deal. You may have made a statement in the contract that reads "seller's only recourse in the event of buyers non-performance is to keep the earnest money depost as liquidated damages". And I would clear that statement with an attorney as well to be on the safe side. I wouldn't even want to put earnest money at risk - it is not necessary. Sellers are motivated to sell, if you are having to always come to a highest and best offer, then you should look for other deals that are not as competitive or in another area. Dig a little deeper for the deals they are out there! I hope that this information helps!
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