Just a thought. If I make an offer and am obtaining a mortgage from a source other than the owner, I always include the following contingency in my offer: " This contract is contingent upon Buyer being able to obtain a (First, Second, etc.) mortage with terms and conditions agreeable to Buyer". I use this in case I run into something that I have not planned on. I also list the contract’s validity based upon all contingencies. This gives me an out as I have not stated what terms and conditions are agreeable to Buyer. I have never had a seller question this and I think that it is a good contingency for the Buyer. It gives the Buyer some " breathing room". I hope this will help.
I am getting ready to make an offer on a block of condominium properties that already have tenants. Are there any special contingencies that I should include in my offer?
I know that I want a period of time to review and approve the CCRs, and I want a period of time to review and accept the association financial statement.
What about the current tenant’s leases? security deposits, satements of personal property that conveys (such as washer/dryer, etc)? Anything else I should consider?
Dave,
One thing I always put in my contract is that the appraised value of the property must be equal to or greater than the purchase price. Not that appraisals are always accurate but it may give you some protection or negotiating power if they don’t appraise for the purchase price. Maybe you already thought of this but thought I’d mention it.
I think you got it. Your offer should be subject to reviewing and approving the leases…and perhaps subject to the receipt of an estoppel certificate. Obviously the lease and/or estoppel certificate should contain security deposit information.
A contingency to approve personal property conveyed would be a good idea too.