Contract Contingencies for Investment Properties

[Brittany Daubner]

Hi all,

I'm doing some research and since I've not purchased an investment (or any) property before, does anybody have any suggestions or specific or standard contingencies they'd put or want in their contract when making an offer? Also, who writes the contract, the REA?

Thanks in advance! 

[Dylan J Berget]

Hey there! As an attorney, I think I can provide some insights:

When it comes to purchasing an investment property, it's always a good idea to include contingencies in your contract to protect yourself. Some common contingencies include financing, inspection, appraisal, and title contingencies. These contingencies give you an out in case the property does not meet your expectations, or if there are issues with the financing or title.

In addition to these standard contingencies, you may also want to consider including specific contingencies that are unique to the property or your situation. For example, if you're buying a property that needs extensive repairs, you may want to include a contingency that allows you to back out of the contract if the cost of repairs exceeds a certain amount.

Regarding who writes the contract, it's typically the responsibility of the buyer's real estate agent to draft the contract. However, in some cases, the real estate agent may provide a standard contract template for the attorney to work from, or you may want an attorney to draft the contract on more complex deals. 

I hope this helps with your research. Good luck with your investment property purchase!