What Does Contingent Mean on a House Sale?

September 17, 2023 by admin

What Does Contingent Mean on a House Sale?

September 13, 2023 by Matt Goeglein at Fidelity National Title

In the context of a house sale, “contingent” typically means that the sale of the house is dependent on certain conditions being met. These conditions could include things like the buyer securing financing, the completion of a home inspection, or the sale of the buyer’s current home.

For example, if a buyer makes an offer on a house and the offer is accepted by the seller, the sale may be contingent on the buyer obtaining financing within a specified period of time. If the buyer is unable to obtain financing, the sale may fall through.

Another common contingency is a home inspection. If the inspection reveals significant issues with the property, the buyer may have the option to renegotiate the terms of the sale or back out of the deal altogether.

Contingencies are designed to protect both the buyer and seller in a real estate transaction. They give the buyer an opportunity to ensure that the house is in good condition and that they can obtain financing, while also giving the seller some assurance that the sale will go through if the conditions are met.

Types of Home Contingencies

There are several types of contingencies that can be included in a home sale contract. Here are some of the most common.

Financing contingency: This contingency specifies that the sale of the home is contingent on the buyer obtaining financing. If the buyer is unable to secure financing within a specified timeframe, the contract may be voided.

Appraisal contingency: This contingency specifies that the sale of the home is contingent on the home appraising for at least the purchase price. If the appraisal comes in lower than the purchase price, the buyer may have the option to renegotiate the price or back out of the deal.

Inspection contingency: This contingency specifies that the sale of the home is contingent on a satisfactory home inspection. If the inspection reveals significant issues with the property, the buyer may have the option to renegotiate the terms of the sale or back out of the deal.

Sale contingency: This contingency specifies that the sale of the home is contingent on the buyer selling their current home within a specified timeframe. If the buyer is unable to sell their current home, the contract may be voided.

Title contingency: This contingency specifies that the sale of the home is contingent on the seller having clear title to the property. If there are issues with the title, the contract may be voided or the seller may need to take steps to clear the title before the sale can proceed.

It’s important to note that contingencies can vary depending on the specifics of the contract and the state or region where the sale is taking place. It’s always a good idea to consult with a real estate professional or attorney to ensure that your contract includes the appropriate contingencies for your situation.

California Statewide Eviction Moratorium to End

September 24, 2021 by admin

From the CAR website:

On September 30, the statewide eviction moratorium under the COVID-19 Tenant Relief Act (CTRA) is due to end. However, the law will not simply return to its pre-pandemic form. Instead, a new law, the COVID-19 Rental Housing Recovery Act, will take its place. Here are the key differences in practices and procedures.

Exemptions for SFP and new construction to the just cause eviction rules return. Beginning October 1, the standard exemptions to the just cause eviction rules return, the most significant ones being for single family properties and new construction properties built within the last 15 years.
For rent due prior to October 1, 2021, the 15-day notice is still required (but not for rent due prior to March of 2020). To avoid confusion after October 1, if a tenant owed COVID rent from before October 1, 2021, it is highly recommended to use the appropriate forms to demand the rent now.
Special 3-day notice beginning October 1, 2021, through March 31, 2022, and the requirement of applying for Emergency Rental Assistance. Beginning October 1, a landlord may demand the full amount of rent using a special 3-day notice to pay rent or quit for rent that became due on or after October 1. However, the new notice requires the landlord to apply for emergency rental assistance. This special 3-day notice will be required for all rent due until March 31, 2022.
Tenancies commencing October 1, 2021, are not subject to the special 3-day notice. If the tenancy has commenced on or after October 1, 2021, then neither the special 3-day notice nor the requirement to apply for emergency rental assistance is required. Instead, on that date landlords can return to using the traditional 3-day notice to pay rent or quit.
On November 1, 2021, the landlord may collect unpaid COVID rent due from March 2020 through September 2021. Beginning November 1, 2021, the landlord may initiate a legal action to recover the unpaid COVID rent. This includes going to small claims court to recover any amount of COVID rental debt even if it is otherwise over the small claims court limits.

The above explanation is a simplified version of a surprisingly complicated procedure. C.A.R. intends to update its landlord/tenant forms where necessary. This will include:

The introduction of the special 3-day notice to pay rent or quit for rent demanded from October 1, 2021, through March 31, 2022
The reintroduction of the standard 3-day notice to pay rent or quit (for tenancies commencing after October 1, 2021)
The removal of the “Notice of Termination of Tenancy COVID Tenant Relief Act” (form NTT-CTRA)
The return, in its pre-pandemic form, of the “Notice to Terminate Tenancy” (form NTT)

Even though C.A.R. may make forms available for landlords to use, all persons are strongly urged to work with their own landlord/tenant attorney specialist before providing these notices, especially if their ultimate aim is to evict through a court procedure.

Information on Property Tax Penalty Relief

August 29, 2020 by admin

On March 4, 2020, California issued a State of Emergency as a result of COVID-19.Executive Order N-61-20

Many taxpayers have suffered financial hardship as a result of COVID-19, which has undermined their ability to pay property
taxes when those taxes have become due.

Under the provisions of Government Code section 8571, strict compliance with various statutes specified in this order would
prevent, hinder, or delay appropriate actions to prevent and mitigate the effects of the COVID-19 pandemic.

Governor of the State of California, in accordance with Government Code sections 8567, 8571, and 8627, does hereby issue the
following Order to become effective immediately it is hereby ordered that:

1) Division 1 of the Revenue and Taxation Code (including sections 75.52, 2610.5, 2618, 2922, 2705, and 4103) is suspended
until May 6, 2021 to the extent that it requires a tax collector to impose penalties, costs, or interest for the failure to pay
taxes on property on the secured or unsecured roll, or to pay a supplemental bill, before the date and time such taxes
became delinquent, and a tax collector shall cancel such penalties, costs, and interest provided all of the following conditions
are satisfied:

i) The property for which taxes were not paid is either:

a. residential real property occupied by the taxpayer, or
b. real property owned and operated by a taxpayer that qualifies as a small business under the Small Business

Administration’s Regulations, Code of Federal Regulations, Title 13, section 121.201;

ii) The taxes owed on the property in question were not delinquent prior to March 4, 2020;
iii) The taxpayer timely files a claim for relief in a form and manner prescribed by the tax collector; and
iv) The taxpayer demonstrates to the satisfaction of the tax collector that the taxpayer has suffered economic hardship, or
was otherwise unable to tender payment of taxes in a timely fashion, due to the COVID-19 pandemic, or any local, state, or federal government response to COVID-19.
Revenue and Taxation Code section 4985.2, subdivision (a) is suspended to the extent necessary to implement this Paragraph 1.

2) The taxes owed on a property by a taxpayer making payments pursuant to an installment plan under Revenue and Taxation Code section 4837.5 or Revenue and Taxation Code, Part 7, Chapter 3 (commencing with section 4186) shall not be considered delinquent under Paragraph 1 of this Order if, on or before March 4, 2020, all payments required by the plan were made.
3) Paragraph 1 shall not apply to any property for which taxes are paid through an impound account.
4) Revenue and Taxation Code section 441, subdivision (b), and section 463, subdivision (a), are suspended until May 31, 2020
to the extent that either imposes a penalty for failing to file a property statement on or before May 7, 2020, such that no
penalty shall be imposed upon a taxpayer if the taxpayer files a personal property tax statement as required by
Revenue and Taxation Code section 441(a) on or before May 31, 2020.

It is further noted that, as soon as possible, this Order shall be filed in the Office of the Secretary of State, and that widespread publicity and notice will be given.

This Order is not intended to excuse any taxpayer from the duty to pay any taxes separate and apart from any penalty, costs, or interest resulting from the failure to pay taxes before the date and time such taxes became delinquent.

This Order is not intended to limit or restrict the existing authority of a tax collector, auditor, or board of supervisors to waive, cancel, or excuse penalties, costs, or interest.

This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

Information provided by USA National Title

The Easiest Way to Search for Homes in the South Bay

August 17, 2020 by admin

If you’ve been searching for a home in the South Bay but were hoping there is an easier way…..there is!

Let us do the work for you with our free customized home search alerts. Tell us a bit about your dream home and we’ll do the rest. Receive daily, weekly or monthly updates or even get notified the moment a new listing hits the market. Our MLS is updated every 15 minutes and we’ll notify you as soon as there is a new home for sale in Manhattan Beach.

If you’ve wondered what the best way to search for homes in the South Bay, Palos Verdes and the Beach Cities is…..you’ve found it. Never miss a new listing again!

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Welcome to real estate in the South Bay, Beach Cities and Palos Verdes

December 5, 2019 by admin

Welcome to everything real estate in the South Bay. We strive to be the most comprehensive real estate you’ll find. Unlike the national real estate portals, we are top realtors in the South Bay and Beach Cities and have put together information you cannot find anywhere else. Get community information, search the current homes for sale, find the value of your home and more…

There is no sign ups or enrollments needed on our site and we hope that we can show you just how knowledgable and helpful we can be with all of your real estate needs and hope to earn your business.

Visit our links at the top of the page or visit our home search by community page to view all of the current homes for sale by specific city or neighborhood.

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Welcome to the many wondeful cities and neighborhoods of the South Bay, beach cities and Palos Verdes. Click on any of the links below to learn more about the community and real estate. See the homes for sale and get to know what makes each neighborhood unique and different.

If you want other information or would like our assistance with your search please don’t hesitate to contact Keith Kyle for all of your real estate needs.

South Bay Communities and Homes for Sale


Search for Homes	FREE Listing Update Alerts	What is Your Home Worth?	Home Buyer Resources

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Plaza Del Amo	Fusion At South Bay	Southwood & South Torrance	The Golden Hills RB

Old Torrance	Gardena	El Camino Village	Oceanfront Homes

Dealing With Home Inspection and Repair Challenges During Escrow

November 12, 2019 by admin

One of the more treacherous parts of an escrow is the home inspection and request for repairs. Often times the buyer thinks that the home inspection is a “checklist” of what needs to be fixed while the seller either thinks their home is perfect or “it was just fine for us so why does the buyer need things that work fine upgraded or repaired”. Finding middle ground isn’t always easy but a good realtor can help address some of the challenges before they even come up and help manage expectations as how to get through a very challenging situation.

As the chart below shows, 80% of home inspection reports show at least something needing to be fixed. In our opinion that’s even on the low side….in our experience there are always issues. We always recommend to both our buyers and sellers to be reasonable. On the buyer side stick to actual problems or repairs. If it’s an issue that the buyer will have to immediately pay for to have repaired…it’s a reasonable request. The biggest challenge items are either those called out as not up to “current “code, or items towards the end of their service life. Buyers need to understand that the statement “not up to current building code” does not mean it’s necessarily problematic. Codes change all of the time and unless it’s a clear safety issue, it’s usually best to stick with actual repairs. Items at the end of their service life really depend on the item, the cost and how extensive the rest of the repair list. We’ve found that asking for everything usually ends with the seller dismissing any repairs….even the reasonable ones.

Keith Kyle is a top producing realtor and Torrance real estate specialist with Vista Sotheby’s International Realty in the South Bay. Contact Keith for more information on how the home inspection and escrow process works in Torrance real estate.