Contingency Removal Form - Enhanced Workflow Prompt

You are drafting a Contingency Removal Form, a critical transactional real estate document that formally removes contingencies from a purchase agreement. This document must be precise, legally compliant, and properly formatted according to the jurisdiction's requirements.

Document Purpose and Context

Begin by understanding that a Contingency Removal Form is a binding legal instrument that waives the buyer's right to cancel a real estate transaction based on specific contingencies previously included in the purchase agreement. The removal of contingencies represents a significant commitment by the buyer and moves the transaction closer to closing. This document must clearly identify which contingencies are being removed, establish the effective date of removal, and ensure all parties acknowledge the implications of this action.

Information Gathering and Verification

Start by thoroughly examining any uploaded purchase agreements, inspection reports, financing documents, or related contracts to extract essential information including the complete legal names of all parties (buyers, sellers, and their respective agents or attorneys), the property's legal description and address, the original contract date, and the specific contingencies that were included in the purchase agreement. Cross-reference this information across multiple documents to ensure accuracy and consistency.

Research the specific requirements for contingency removal forms in the applicable jurisdiction by investigating state bar association guidelines, local real estate commission standards, and statutory requirements. Different states have varying rules about timing, notice requirements, and formalities for contingency removal. Verify whether the jurisdiction requires specific language, notarization, or witness signatures.

Document Structure and Content

Document Header and Identification: Create a professional header that clearly identifies this as a Contingency Removal Form or Notice of Removal of Contingencies, depending on local terminology preferences. Include the current date of execution, the jurisdiction (county and state), and a reference to the underlying purchase agreement by date and parties. Consider including a document reference number if the transaction involves multiple amendments or addenda.

Party Identification Section: Provide complete and accurate identification of all parties to the original purchase agreement. For each buyer and seller, include their full legal names exactly as they appear in the purchase agreement, their roles in the transaction, and their contact information. If the parties are represented by real estate agents or attorneys, include their names, brokerage or firm affiliations, and license numbers where applicable. Ensure that the party designations match the original contract to avoid any ambiguity about who is bound by this removal.

Property Description: Include a comprehensive property description that unambiguously identifies the subject real estate. This should include the complete street address, the legal description as it appears in the purchase agreement (including lot number, block number, subdivision name, and any metes and bounds description if applicable), the assessor's parcel number (APN), and the county where the property is located. The description must be sufficient to distinguish this property from all others and should match the description in the underlying purchase agreement exactly.

Contingencies Being Removed: This is the substantive core of the document. Clearly enumerate each contingency being removed with specific reference to the section or paragraph of the purchase agreement where it appears. Common contingencies include inspection contingencies (general home inspection, pest inspection, roof inspection), financing or loan contingencies, appraisal contingencies, sale of buyer's current home contingencies, and review of homeowners association documents. For each contingency being removed, state explicitly that the buyer is waiving their right to cancel the agreement based on that contingency and acknowledges that they are proceeding with the transaction despite any findings or circumstances related to that contingency. If only some contingencies are being removed while others remain in effect, clearly specify which contingencies are being removed and which remain active.

Effective Date and Conditions: Establish the precise effective date and time when the contingency removal becomes binding. Specify whether the removal is effective immediately upon execution, upon delivery to the seller or seller's agent, or on a specific future date. Address any conditions precedent to the removal becoming effective, such as receipt of certain documents or satisfaction of specific requirements. Include clear language about the timing requirements under the original purchase agreement, noting any deadlines for contingency removal that were specified in the contract and confirming that this removal is being made within those timeframes.

Acknowledgments and Representations: Include language where the buyer acknowledges that they understand the legal effect of removing the contingencies, that they have had the opportunity to conduct all inspections and investigations they deemed necessary, that they are proceeding with the transaction voluntarily and with full knowledge of the property's condition, and that they understand they may forfeit their earnest money deposit if they fail to complete the transaction after removing contingencies. Consider including a statement that the buyer has consulted with legal counsel or has had the opportunity to do so.

Signature Block and Execution: Provide properly formatted signature lines for all required parties. At minimum, the buyer(s) must sign, but best practice often includes signature lines for the seller(s) to acknowledge receipt and acceptance of the contingency removal. Include spaces for printed names, dates of signature, and any required witness or notary acknowledgments. Research whether the jurisdiction requires notarization for contingency removal forms or whether simple execution is sufficient. If notarization is required or recommended, include a proper notarial certificate with spaces for the notary's signature, seal, commission number, and expiration date.

Final Document Assembly and Quality Control

Before finalizing the document, verify that all dates are consistent and logical (the contingency removal date should fall within the timeframes specified in the purchase agreement), all party names are spelled identically to the purchase agreement, the property description matches exactly, and all contingencies being removed are actually contingencies that exist in the underlying contract. Ensure the document uses clear, unambiguous language that would be understood by all parties and enforceable in the jurisdiction. Check that the formatting is professional and that the document includes appropriate spacing for signatures and dates.

The completed Contingency Removal Form should be a standalone document that clearly communicates which contingencies are being removed, is legally sufficient to bind the parties, and provides a clear record of this critical step in the real estate transaction. Once all information has been gathered, verified, and organized according to these specifications, generate the final document with all sections properly formatted and ready for execution by the parties.