Seller wants no contingency offer or brokers involved in deal

Q: I have fallen in love with a nearby house that’s not on the market yet, and the owner says that he doesn’t want any brokers or contingencies. What are contingencies? — askedith.com

A: A contingency is an uncertain future event with some other event that depends on it. It’s a “but only if ” situation. For example, a buyer signs a purchase offer that says, “I’ll give you a million dollars for your house, contingent upon X.”

The most common contingencies look something like “contingent upon getting a mortgage loan for $800,000.” Or sometimes it’s “contingent upon the successful sale of my present home.”

Contingencies usually specify some relatively short period of time, as the sellers have to wait around with their house tied up and pretty much off the market to see whether the contingency will happen.

If your neighbor won’t accept an offer like that, you could sign a contract in which you offer to buy the home period, come what may. You could still apply for a mortgage loan or put your present home on the market. But if something were to go wrong and you couldn’t come up with the purchase money by the specified time, you’d be in legal trouble.

A home seller who really means no contingencies at all is looking for an all-cash offer.

Lead paint

Q: I recently bought a four-unit house to rent out. It is in fine shape and is newly painted inside and out. I understand lead hasn’t been used in paint for half a century. Do I still have to give tenants that lead-paint warning booklet? — R. W.

A: Yes, if it was built before 1978. That was when lead was outlawed for household paint. Lead paint dust can be a real health hazard.

These days it’s seldom found, and there’s no threat to health when all is new and trim. The dangers could come if new paint were to flake or chip and send the dust of older layers into the air.

The federal government requires you to give new tenants of a house built before 1978 an EPA-approved booklet with lots of detail on the subject. Similar rules apply to the seller of a house that old. Buyers are entitled to 10 days during which they can investigate with an inspection.