Contingency Contract In Negotiation In Georgia
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A contingent contract is an agreement that states which actions under certain conditions will result in specific outcomes. Contingent contracts usually occur when negotiating parties fail to reach an agreement.
Under Georgia law, for a contract to be valid, there must be an offer, acceptance, consideration, and mutual assent. See O.C.G.A. § 13-3-1.
To negotiate this contingency effectively, consider the following tips: Get Pre-Approved: Before making an offer, get pre-approved for a mortgage. This demonstrates to the seller that you're serious and financially capable, making them more comfortable with the financing contingency.
A contingent contract is a legal agreement in which the terms and conditions only apply or take effect if a specific event occurs. Essentially, the parties involved agree to perform actions or obligations based on the occurrence or non-occurrence of a particular event in the future.
In a contingency contract, the task defines exactly what behavior a person must engage in to access the reward. It should include what needs to be done, who must do it, when it must be done and details with how it must be done. It should be very clear and specific for all parties.
The most common contingency is the home inspection contingency. This condition on an offer states the home sale will only be finalized if the property passes a professional home inspection. In other words, buyers can walk away from a home sale if the home inspection turns up serious problems.
A contingency clause should clearly outline the conditions, how the conditions are to be fulfilled, and which party is responsible for fulfilling them. The clause should also provide a timeframe for what happens if the condition is not met.
The contingent period usually lasts anywhere from 30 to 60 days. If you have a mortgage contingency, the buyer's due date is usually about a week before closing. Overall, a home stays in contingent status for the specified period or until the contingencies are met and the buyer closes on their new house.
