Looking to buy or sell a home but keep seeing "Active with Contingency"? What does it mean?
Are you in the process of buying a home or maybe you are thinking of selling your home in Lake Havasu City, AZ. You are watching the market in your area? Do you keep seeing the phrase “Active with Contingency”? Have no idea what it means. In our area we are seeing it more and more. In this brief post I will do my best to explain it to you.
Active with Contingency means the house does have a signed legally binding contract on it. However the contract is contingent on (subject to) the buyer’s successfully closing on a home they own before they can purchase this one.
The AAR form is called the Buyer contingency addendum. In this addendum, there are two types of contingency.
- Contingent upon accepted offer for buyer’s property: This is when the buyer’s home is listing for sale, but there is not an accepted offer yet and it is not in escrow. Because this contingency if a little more risky for the seller. The seller may accept back up offers. If the seller receives and accepts a back up offer the current buyer is given 3 days to remove this contingency. If the current buyer can not perform and remove this contingency the seller can cancel this contract and move forward with new offer.
- Contingent upon the closing of buyers property: This is when the buyer’s home does have an accepted purchase contract on it and it is already in escrow. And the buyer just is waiting for the sale to be complete.
As you know there is a whole lot of things that need to happen in the contract time frame. Be sure to read this contingency form completely and make sure you understand it. You can always ask one of our agents at Destination Havasu we are ready to help from start to finish with your real estate needs.
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