Tip of the Week: Identifying a proper contingency

Identifying a proper contingency: You see a lot of contingencies throughout your business. Here are some things to look out for to ensure an adequately written contingency:

• Deadline for When the contingency Must be Met: For example, “February 15^th, 2024”;
• Specific Terms: For example, “Seller must secure a replacement rental property”;
• What Happens if the Contingency is Met: For example, “if the seller provides written notice of satisfaction of the contingency by the deadline, the contingency will be deemed waived.”
• What Happens if the Contingency is Not Met: For example, “this transaction will automatically terminate if the seller does not provide written notice of satisfaction of the contingency by the deadline.”

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.