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occurring first. For instance, a
contingency could be that "buyer to obtain and 80% loan at a rate of 4% interest
rate". If such a rate cannot be obtained by this buyer (and good luck on that one)
this contingency could void the contract.

Many times a contingency in a contract is that the buyer receives a whole house
inspection, the results of which are acceptable to the buyer. If the inspector comes

in with a list of repairs the buyer must then decide if that is acceptable to him, or
ask the seller to make it acceptable. If no agreement can be reached the contract
could be void.

When signing a contract to purchase, make sure you understand thoroughly what is expected of you, either as the buyer or the seller. Your agent should explain each item to you so that you are clear of what can or could take place by both parties.

If the contract is not performed acceptably to both parties, there are legal avenues to correct the situation. Since the listing belong to the broker and the buyer is probably represented by and agent and his broker, if legal remediation is involved it is brought against the brokers as representatives of both parties involved. Compensation for failure to perform can include compensatory damages, money awarded to compensate for the harm caused.
Specific performance is also a legal remedy in which the judge can order the parties to perform as stated in the contract. This occurs when it is felt that the parties cannot be fully compensated by money alone.

Most people enter into contracts expecting a good outcome. Just keep in mind that there are remedial avenues available in case something goes terribly wrong, and keep up your end of the bargain.

Learn more about this author, JoAnn Powell.
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