What Is a Sale Contingency?


A home sale contingency is one type of contingency clause which is often included in a real estate sales contract or an offer to purchase real estate. The clause states that the transaction is dependent (or contingent upon) certain circumstances - usually the sale of the buyerís home.

Many people start looking for their ideal home before their own has sold. If they find their dream house, they will usually make an offer on it so it doesnít slip away. However, they will be depending on the money they get from selling their home in order to buy the new home. With a sale contingency clause, they would stipulate a date by which they would be able to sell their own home, so the sale would move forward. If the house does not sell by that date, the contract will be terminated and the seller will be free to sell to another party.

There are a couple of things to keep in mind when writing contingency clauses. The first is that there are two types of home sale contingencies.

Sale and Settlement Contingency

A sale contingency is dependent upon the buyer selling an existing home and getting the money to then pay for the new home they are interested in. This clause is appropriate if the buyer has not yet received an offer on their existing home, or has not yet accepted it. 

This type of contingency clause will usually allow a seller to continue to market the home to other potential buyers. The prospective buyer would then have a certain period of time, such as one or two business days, to either move forward with the sale or terminate the contingency clause so they seller could proceed with the sale with another buyer. The buyer would then get their earnest money back and they would no longer have the option to buy the house.

A settlement contingency is used if the buyer has already marketed their property, found a buyer, and has a scheduled settlement date by which the sale will be closed. However, things can go wrong at the last minute when it comes to buying and selling a house. This clause protects the buyer if the sale falls through for any reason, because it prohibits the seller from accepting other offers on the house for a certain period of time. If the settlement does not occur on the specified date, then the contract would come to an end.

The Reasons for Contingency Clauses

Contingency clauses are invaluable for buyers because they can avoid owning two homes and holding two mortgages at one time while waiting for their own home to sell. A home sale contingency also means they can move from one home to the other right away, rather than selling their home and then trying to find a place to live until their new home is ready.

The downside is that buyers will usually have to pay a bit more for the property than if they made an offer without the home sale contingency clause. This is due to the fact that they are asking the seller to take a risk that they might or might not get their money. The sale could fall through, so buyers would pay a bit more to compensate them for basically taking their house off the market. 



A home sale contingency is one type of contingency clause which is often included in a real estate sales contract or an offer to purchase real estate. The clause states that the transaction is dependent (or contingent upon) certain circumstances - usually the sale of the buyerís home.

Many people start looking for their ideal home before their own has sold. If they find their dream house, they will usually make an offer on it so it doesnít slip away. However, they will be depending on the money they get from selling their home in order to buy the new home. With a sale contingency clause, they would stipulate a date by which they would be able to sell their own home, so the sale would move forward. If the house does not sell by that date, the contract will be terminated and the seller will be free to sell to another party.

There are a couple of things to keep in mind when writing contingency clauses. The first is that there are two types of home sale contingencies.

Sale and Settlement Contingency

A sale contingency is dependent upon the buyer selling an existing home and getting the money to then pay for the new home they are interested in. This clause is appropriate if the buyer has not yet received an offer on their existing home, or has not yet accepted it. 

This type of contingency clause will usually allow a seller to continue to market the home to other potential buyers. The prospective buyer would then have a certain period of time, such as one or two business days, to either move forward with the sale or terminate the contingency clause so they seller could proceed with the sale with another buyer. The buyer would then get their earnest money back and they would no longer have the option to buy the house.

A settlement contingency is used if the buyer has already marketed their property, found a buyer, and has a scheduled settlement date by which the sale will be closed. However, things can go wrong at the last minute when it comes to buying and selling a house. This clause protects the buyer if the sale falls through for any reason, because it prohibits the seller from accepting other offers on the house for a certain period of time. If the settlement does not occur on the specified date, then the contract would come to an end.

The Reasons for Contingency Clauses

Contingency clauses are invaluable for buyers because they can avoid owning two homes and holding two mortgages at one time while waiting for their own home to sell. A home sale contingency also means they can move from one home to the other right away, rather than selling their home and then trying to find a place to live until their new home is ready.

The downside is that buyers will usually have to pay a bit more for the property than if they made an offer without the home sale contingency clause. This is due to the fact that they are asking the seller to take a risk that they might or might not get their money. The sale could fall through, so buyers would pay a bit more to compensate them for basically taking their house off the market. 



©2019 Lon Levin Real Estate  All rights reserved 



How Natural Landscaping Can Help Heal Mother Earth

By now, everyone is familiar with environmental concerns, global warming, and going green. However, what most individuals do not realize is that natural landscaping can assist with all these environmental goals.

Many folks will raise money, do walks, recycle, and plant trees. However, most people are not aware that natural landscaping is something that will benefit Mother Earth and is something that is easily attainable. 

There are many ways in which natural landscaping can help heal Mother Earth.



Carbon Footprint

An individual typically knows a carbon footprint as the sum of all emissions of greenhouse gases used during their daily activities. For example, using a motor vehicle emits a certain amount of carbon dioxide just as heating your home with gas does. Using electricity and consuming products that emit carbon dioxide all contribute to your carbon footprint. 

Utilizing natural landscaping such as native plants and tall grasses eliminates the need for hurtful and harmful chemicals to the environment. Having tall grass as compared to grass that needs mowing means less gas for weed whackers and lawn mowers, thus reducing the carbon footprint of your landscaping needs.  ​

Less Use of Pesticides and Herbicides

Of course, not using pesticides, herbicides, and allowing Mother Earth to water her own plants as needed means that everything is taken of care of as intended without the extra influence of humans and their environmental concerns.​

Global Warming Effects

Native plants, tall grasses, and natural shrubs are all wonderful ways to protect the environment. Most native plants require little water and can survive in dry spells such as drought seasons, thereby utilizing less water.

Native plants have very deep root systems. This allows them to remove more carbon dioxide from the atmosphere utilizing their very own filtration system.

Fossil fuel reduction is a major bonus for eliminating this problem with the environment. Since native plants and tall grasses require little in the way of maintenance and chemicals, these plants are typically able to sustain themselves without manmade chemical intervention.

This, of course, benefits the environment and prevents further warming effects.

Individuals, families, companies, golf courses, organizations, and groups, as well as campuses, are all in a position to reduce this serious situation Mother Earth is in at the moment, and utilizing natural landscaping is just one simple and creative way to achieve it.

If every family and every business would incorporate one simple aspect of natural landscaping into their structures, then the environment and Mother Earth would be that much better off.

Using natural landscaping benefits Mother Earth in all these ways and more.



©2019 Lon Levin Real Estate  All rights reserved   




 818.268.9953

What Are Seller Concessions?

There are many different costs and fees involved in buying a home. If a buyer is not careful, they can really start to mount up. Therefore, smart prospective buyers will often ask for concessions from the person selling the home in order to keep down expenses.

Closing costs in particular can really become overwhelming. They are rarely budgeted for when eager buyers scrape together their down payment. Rather than let a good buyer walk away from the table at the last minute, sellers might be willing to offer the concession of paying some or all of the most common fees involved in finalizing the sale.

Various Concessions

There is a large amount of paperwork involved in selling a home. In some cases, it might be cheaper for the seller to do it than the buyer, and this will also generate good will.

Seller concessions might also include little perks around the house that wonít cost too much, but can move the sale along for a great price. Replacing the old appliances, or taking up the gross old carpeting and putting in wood flooring would be good examples.

Concession Restrictions

Concessions can sweeten the deal, but there are limits as to the number of perks allowed in relation to the type of mortgage the buyer is taking out. A conventional mortgage allows from 2% to 9% in seller concessions. A VA mortgage permits up to 4%. FHA and USDA loans allow up to 6% percent in seller concessions. 

These concessions mean the expenses are all being rolled into the mortgage so the buyer does not need to pay in cash. Certain concession will also add to the value of the house, making the final appraisal and sale a lot easier. 

Settlement Costs

For cash-poor buyers who have underestimated how much they needed to close the deal, the seller can pay any of the settlement costs. They are not allowed to contribute to your down payment, and they will also not be allowed to pay for your mortgage application fees or credit check fees.

Adding It All Up

When you have moved far enough forward in the process to get pre-approval on a mortgage, you will have a good idea of who the lender is, how much you can borrow, and what the closing costs will be. Some realtors will ask for seller concessions in round figures, such as 6% of the closing cost and other fees.

However, it is important to note that if you are living in a low tax area and buying only a modest home, that would actually cause you to lose money in the long term. Why take 6% and therefore give up 6% of the mortgage to the seller when the fees are really only 3%? It's a case of buyer beware, knowing what things actually cost, and itemizing them rather than making blanket concession deals.

The Bottom Line

Seller concessions help grease the wheels of a house sale, but they are certainly not a gift. Be clear about all the title deeds required, fees and documents, and make the deal based on what your closing costs actually are.





©2019 Lon Levin Real Estate  All rights reserved