Clauses Aid Seller Too

Robert J. Bruss (“Real Estate Q&A;”) often rightly recommends that buyers insist on including various contingency clauses in purchase offers to protect themselves. What never seems to get mentioned is that these same clauses also protect the sellers. Examples:

A buyer’s inspection contingency protects the seller against a future lawsuit for failing to disclose a condition that the seller may not have been aware of. After all, if the buyer’s independent professional inspector didn’t find the condition, how could the seller have been expected to know about it?

A loan contingency, properly written, should not only give the buyer the right to withdraw but should also give the seller the right to cancel if the loan contingency isn’t fulfilled.

I have seen sellers take one offer over another simply because a clever buyer doesn’t require a loan contingency. Then, after the house has been off the market for the entire escrow period, if the buyer is unable to complete the sale the seller winds up releasing the deposit, regardless of any liquidated damage clauses, to avoid getting the house tied up in a time-consuming legal hassle when no actual monetary damage can be proved because prices are still going up.

BARBARA ASPENSON

Los Angeles

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