after that event is satisfactorily resolved. In general, there are two kinds of contingencies: financing and home inspection. A deal is frequently made contingent upon the homebuyer succeeding in getting some specified amount of financing from a lending organization. Also common is a contingency declaring the deal will only go through if the recommendations made after the home inspection are deemed satisfactory. These two contingencies are probably the most common, and both frequently appear together. If either of these two contingencies is not realized, the contract would be void. Also, it is important to mention all the inspection conditions in the purchase offer.
BUYING STEP #9: Put Money in Escrow
While purchasing a home, the buyer is expected to put money into escrow. This makes the contract binding and subsequently moves it through closure. Escrow is the period between the time a purchase offer is made on a property and the time when that property’s title is transferred to the new owner. The initial deposit amount collected as part of the escrow is also referred to as good faith earnest money. This is the payment that will follow the home purchase process. How much is to be deposited in the escrow will depend on the terms in the purchase offer. An escrow agent is a third party enjoying a neutral state between the buyer and seller. The escrow is assurance to both parties and is involved in the transaction so that the clauses of the offer will be met completely.
In the real estate arena, the escrow process is essential in cases
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