What is All Title Contingency?

A title contingency is a common stipulation in a home buying agreement that allows the buyer to back out of the sale without penalty if there is a problem or issue with the title to the property. Title contingencies are very commonplace, and all Purchase and Sale agreements in Washington State are contingent upon the buyer receiving a clean title. This would only make sense, wouldn't it? The buyer has the right to know that the property they are buying is free from any title issues. The buyer also has the right to make sure that the seller has the legal right to sell the property and that they are the legal owners.This contingency is mostly to provide a peace of mind and protection for the buyer.

The process of a title contingency is pretty simple and straightforward. Within a week of coming to a mutual agreement, the buyer will be presented with a preliminary title report from a title insurance company. In this title report, there will be a list of any discrepancies or issues with the title. There will be details about any parties that may have a lien on the property. The title report will also list any issues or items that need to be cleared from the title before a new owner can take possession of the property. The title report will also list any easements or encroachments on the property.This is a good way for the buyer to make sure that they will have full accessibility to the entire property.

After the title report is issued, the buyer will have some time to review the report and talk with the title company or agent about any issues that the report might have found. The title agent should also be able to answer any questions that you might have about what they found in the report, if you should have them. If there are any major issues with the title that need to be cleared up before closing, you can let the seller and the title company know.Your agent might want to write up a letter to send to the seller's agent. The title company and the seller's agent will usually work together address any issues that might be a problem. The seller will have until closing to handle all of the problems and issues listed on the title report. If the issues on the report are not resolved by closing, then the agreement is null and void.

As you can see, a title contingency is a very logical contingency to have when buying a home. It offers the buyer a form of protection that they might not otherwise have. When a title contingency is in place, the buyer can rest assured that the home can be legally and easily passed on to them at closing. If you have any questions or concerns about a title contingency, contact a knowledgeable real estate agent like Hamid Ali today!