Understanding the Suitability Contingency (OREF 001, Section 12.1)

This training walks through the Suitability Contingency in Section 12.1 of the OREF 001 – Residential Real Estate Sale Agreement. It explains how the contingency allows buyers to evaluate whether a property meets their specific needs—separate from physical inspections—and provides a clear path for terminating a transaction based on suitability concerns such as zoning, insurance, or intended use.

The session covers how the contingency works, including the default 10-business-day Suitability Period, the process for terminating using OREF 064, and the return of earnest money. It also highlights best practices for buyers and agents, including conducting thorough due diligence and evaluating factors like insurance availability, land use restrictions, and neighborhood conditions. Finally, the training emphasizes how this contingency brings greater clarity to transactions and helps distinguish suitability concerns from inspection-related issues.

Download the OREF 001 Section 12.1 – Suitability Contingency Handout here!

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