Chic vs. Geek: Non-Contingent Offers

Contingent offers have been on the rise of late, indicating an increase of buyer power. But sellers still have the leverage to accept non-contingent offers. So what do buyers and sellers need to know?

CHIC (PEARL)

First and foremost with a non-contingent offer, a buyer may risk losing their deposit or paying other damages if they decide not to purchase after the offer is accepted. The buyer also loses their right to an inspection contingency, which could uncover issues that need correcting but become the buyer’s problem. The good news is that even with non-contingent offers, buyers have the right to cancel an offer if the seller does not provide a Transfer Disclosure Statement (TDS) beforehand or the TDS is updated or modified during the transaction.

GEEK (KEVIN)

It may be tempting for a seller to accept a non-contingent offer in order to have a quick turnaround, but there are plenty of snags that can get in the way. For example, it’s wise to verify if the buyer has the funds to make the down payment or buy the property outright. There’s no guarantee the buyer can get a loan or that an all-cash buyer can come through. And buyers who feel powerless in the purchase process are more likely to file claims and disputes that could hold up a sale for months, or worse, force you to take the property off the market entirely.