What Are Contingencies in a Real Estate Contract?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
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.
Secure financing contingency protection by obtaining same-day approval before making offers, proving to sellers you can close while keeping your contingency in place.
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.
Partner with experienced agents through our realtors and wholesalers network who know how to negotiate contingencies that protect you without weakening your 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.
Work with title professionals from our attorneys and title teams network who review contracts to ensure your contingencies are properly worded and enforceable.
Need to Protect Yourself While Making Competitive Offers?
Contingencies are your safety net in real estate. Here’s how to use them wisely:
🏛️ Have contracts reviewed by professionals from our attorneys and title teams
🤝 Find strategic negotiators through our realtors network
💰 Run the numbers with the Conventional Purchase Loan calculator to understand appraisal contingency implications
📊 Integrate home buying into your wealth plan using the Legacy Impact Planner calculator
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