What Are Contingencies in a Real Estate Contract

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What Are Contingencies in a Real Estate Contract

1. Contingencies Are Conditions Built Into the Contract

Contingencies are specific conditions that must be met for the sale to go through. Common ones include:

  • Financing contingency (you must get approved for your loan)
  • Inspection contingency (the home must pass inspection)

Appraisal contingency (the home must appraise for at least the purchase price)
These are not just formalities—they’re there to protect you.

2. If a Contingency Isn’t Met, You Can Walk Away

Say the inspection reveals major issues—or the appraisal comes in too low. If you’ve included the right contingencies, you can back out of the deal without losing your earnest money. That’s the power of contingencies: they give you options, even after you’ve made an offer.

3. Your Contingencies Should Be Designed to Protect You

Contingencies are your safety net, but not every contract includes the right ones by default. That’s why it’s crucial to work with a savvy real estate agent and loan expert who knows how to structure your offer. You want to move forward with confidence—not fear of being trapped in a bad deal.

Want Help Structuring an Offer That Protects You?

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At Stairway Mortgage, we don’t just help you buy a home —
we help you buy it the smart way.

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