Spring has sprung?

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It might be hard to tell with howling winds and frigid temps outside, but we’re officially two weeks into Spring! What do you look forward to the most this season? Showers or flowers?

CHIC (Pearl)

Who doesn’t love flowers? Seriously though, this is typically the perfect time for me to get outside and embrace my green thumb. The cold weather has certainly put a damper on my flower garden because I’m worried about overnight freezes, but that doesn’t keep me from tilling the soil, clearing the weeds, and getting things ready for the big plant.

GEEK (Kevin)

I’ll admit it, I love flowers as much as anybody. So I’m geeked up to help Pearl get our backyard garden in working order. But I also know we desperately need the water and record-setting Sierra snowpack if we’re ever going to escape from this seemingly endless drought. So bring on the April showers, and let the flowers wait for May.

Contingency, continued...

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Last week, we explored the ins and outs of title contingency. Now, let’s talk about loan contingency and what it means for buyers — and sellers.

CHIC (Pearl)

Loan contingency is a clause that allows a buyer to cancel their home purchase contract without penalty and receive a refund of their earnest money deposit in the event they're unable to secure a mortgage. Like any contingency, this clause could make an offer less desirable to a seller entertaining multiple offers. But it may be necessary to avoid serious financial risk up to and including legal action or being forced to buy the property.

GEEK (Kevin)

Sounds like a catchy clause, and it may not be all that necessary. Our job as realtors is to provide you with a choice of high-quality lenders who will do their homework and ensure that your loan will be approved before it’s sent to underwriters. At the end of the day, it benefits the lender to ensure that you’re in a strong, lendable financial position headed into the offer process. We’ll explore this more under appraisal contingency in a future post.

Title Contingency

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Contingency is a clause buyers include when making an offer on a home that allows them to back out of the deal without losing their deposit if the conditions of the clause aren’t met. So what is a title contingency, and should you include one in your offer?

CHIC (Pearl)

Title contingency protects a buyer against fraud by ensuring the seller is legally authorized to list the property. Imagine going through the whole purchasing process, including negotiation, offers, bidding wars, loan agreements, inspections, and more, only to find out the property isn’t available after all. Sounds like a good idea to me!

GEEK (Kevin)

Title contingency may sound great, but it’s actually redundant in California. That’s because when you buy a home here, either the seller or buyer are required to get title insurance, which clears any clouds around the ownership question. Typically a title check is also performed during escrow, so there are multiple protections for buyers.