Aloha! This is George Krischke with Honolulu Hi-5.
Today, we’re going to discuss “contract contingencies.” A contingency is a condition that must be satisfied, or an event that must take place before a party is obligated to proceed with the contract. Often a contingency will be deemed waved if a party fails to act in a timely manner. There are about a dozen contingencies in Hawaii’s real estate purchase contract and most of them are to protect the buyer.
Some of these contingencies, we’ll go through them, include the home inspection contingency, the termite inspection contingency, financing contingency, buyer’s review of the seller’s disclosure, buyer’s review of the preliminary title report, contingency of obtaining cash funds, buyer’s review of discovered encroachment, buyer’s review of condominium or subdivision or association documents, and some more. Each contingency may have a different time frame and they may be governed by different cancellation provisions per the terms of the contract. Some of these contingencies, we will explore in more detail in future videos.
Until then, ~Aloha!