Contingency
A condition in the contract that must be met for the sale to go forward, such as an inspection, loan approval or appraisal. If it fails within the deadline, the buyer can usually cancel and keep the earnest money.
Also called: contingencies, contingency clause, condition
Related terms
A contract term that gives the buyer time to inspect the property and then cancel, ask for repairs or renegotiate based on what is found. Waiving it means accepting the home's condition as is.
A contract term that lets the buyer cancel without losing earnest money if they cannot get the loan described in the contract by a set date.
A contract term that lets the buyer renegotiate or cancel if the home appraises below the purchase price. It matters most when a lender bases the loan amount on the appraised value.
A contract term that makes the purchase depend on the buyer selling their current home. Sellers often accept it only with a kick-out clause.
The seller has accepted an offer, but the deal still depends on conditions like an inspection, appraisal, or loan approval. Some contingent homes still take backup offers.
A deposit the buyer puts down after the offer is accepted to show they are serious. It is held in escrow or a trust account and usually goes toward the down payment or closing costs at closing.