What are contingencies in a Purchase Offer? 

In most Del Mar home purchase transactions things will go quite smoothly. However, when putting together your purchase offer you want to anticipate potential problems.  By doing so, if something does go wrong you can cancel the contract without penalty. These items are called "contingencies".  Every purchase offer needs to include some contingencies and they must be include at the time of the purchase offer for your Del Mar home.  An example of a contingency would be stipulating that the offer will only be valid upon the sale of and closing on the buyers previous home. If you do not include this as a contingency, you may find yourself making two mortgage payments instead of one. Other common contingencies you should include in your offer are; that you successfully obtain suitable financing,  that the property appraises for at least what you agreed to pay for it,  and that the home pass stipulated inspections. Contingencies are your way to protect you in case you cannot perform or choose not to perform on your promissory offer to buy a home. If you cancel a contract without having included well thought out conditions and contingencies, you could find yourself forfeiting your hard earned money - either by loosing your deposit or being forced to complete a sale and make the monthly mortgage payments.