What Does Contingency Mean in Real Estate

Contingent in real estate is when an offer has been accepted, but certain conditions must
be met before the deal is finalized.

Contingencies are often used to protect the buyer from issues with the home or
unexpected problems in the real estate transaction. Sellers can have contingencies such
as selling a property “as-is” or may have contingencies about closing and moving dates.

Ideally, agents want to encourage that contingencies are kept at a minimum. Too many
contingency requests can weaken a buyer’s offer. Plus; Some contingencies may already
be in the Sales Agreement.

Below are just a couple of examples of contingency meanings:

Common Contingencies in Real Estate
1) Home Inspection Contingency
2) Appraisal Contingency
3) Financing (or Mortgage) Contingency
4) Title Contingency
5) Contingent on Sale of Buyer’s Home
6) Contingent on Seller Making Certain Repairs or Improvements
7) Seller May Accept Another offer Contingencies.
8) Extension of Contract Due to Certain Delays Contingency.
9) Contingent on An Estate being Settled
10) <-Contingent on Review of Homeowner Association HOA Documents

Sellers always prefer less contingencies. Buyers want to make sure they have a
contingency for each concern. As an agent, understanding contingencies is important
whether you are representing the Buyer or Seller.