Buying a home is a big investment, perhaps one of the biggest you will have made to date. Therefore you want to do all you can to ensure it goes smoothly and you spend your money wisely.
One such measure is adding contingency clauses to the contract. These are clauses that will allow you to back out of the purchase in certain circumstances. For example:
If you cannot get the financing
You may need to sell your current home or secure a mortgage to purchase the new one you have your eye on. Even if you already have a buyer or mortgage offer lined up, it is wise to include a financing contingency in case your buyer withdraws or the lender alters the terms of the mortgage it quoted.
If you discover structural issues with the property
Most houses will have some issues. Many of these are minor things that you can inexpensively sort. Yet some could vastly reduce the value of the house. For example, if you discover there is an undisclosed plumbing leak that will require you to rip the bathroom out. The contingency for this can allow you to back out or renegotiate the price.
If you find that the title is not clean
A clean title on a house means the person selling it is fully within their right to do so. Problems that can sometimes occur are inheritance disputes, leaving two or more people thinking they have a claim to the property. Outstanding liens, where a bank, business or individual has been granted a claim on the property until the money owed to them (such as for work carried out) is fully repaid. Or boundary disputes where neighbors disagree on where the line lies.
Those are just some of the contingencies you may consider. Learning more about the property buying process can help you understand which others you might require.