What is a Title Contingency?

What is a Title Contingency? findwell agent Michael Schafer answers in this installment of Ask an Agent.

What is a title contingency?

A title contingency is another contingency you can put in your contract that is for the protection of the buyer. Essentially what this contingency provides is the ability for you to review any potential easements or agreements that are on public record that you may not feel comfortable with as a buyer. A perfect example would be a shared driveway easement or a shared access easement for a neighbor that maybe doesn’t explicitly tell who is responsible for maintaining and repairing that easement or that area and that might be something you as a buyer will want to correct prior to closing.

Can I waive the title contingency in a competing offer situation?

If you’re in a competing offer scenario, the title contingency is a great one that you can remove from the contract. If you can get your hands on a copy of the title report prior to the offer review deadline you should feel more than comfortable after reviewing everything that is in that report with moving forward without the contingency. Your contract itself has a built in protection for issuing clear and free title to the new buyer so removing that title contingency doesn’t mean that you’re not going to get a clear and free title. It just means that you’re comfortable with what you’ve seen that is recorded on public record that’s going to remain with the property after you own it.