Contingency
A contingency is a condition in a purchase contract that must be met for the sale to proceed, protecting the buyer or seller if it is not.
What Contingency means
Common contingencies cover financing, appraisal, inspection, and the sale of the buyer's current home. If a contingency is not satisfied, the party can usually cancel and recover the earnest deposit. They are the buyer's main exit ramps.
Florida example
A buyer included a financing contingency on a Tampa home. When the appraisal came in low and the lender reduced the loan, the buyer canceled and recovered the deposit.
What it is
A contingency is a condition in your contract that must be met for the sale to go through. Common ones cover inspection, appraisal, and financing.
It gives you a safe way to exit if things fall through.
Why it matters
Contingencies protect your deposit and your options. Waiving them adds risk, so use them wisely.
We help you write offers that protect you. Apply now and we will guide your contingencies.
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.