Many home buyers are waiving contingencies and inspections. You may know about the common inspection for mold, bugs, and a home’s interior and exterior, but a Title Contingency and title insurance is also important. Buyers can leave a sale if the home has problems with previous owners or unpaid debts.
John Matarese with WCPO
reports that Scott and Lorrie Hill recently purchased a home “as is”. The Hills unexpectedly were involved in a decades-old property line dispute after signing their contract. “They have paid well over $100,000 in attorney fees so far” says Matarese. The Hills are now stuck with these fees and cannot sell the home until the dispute closes. Buyers can avoid these situations with a title contingency and get a record of any judgements made against the property.
The remaining question is why are people waiving contingencies? The reason is that many buyers are desperate to close and want to avoid being outbid. Redfin reports that the number of contingencies waived in December 2020 was more than double the number in December 2019. You can see that waiving a continecy is not worth it with the Hills' situation.
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