Mortgage Glossary
Contingency
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
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.
Related Mortgage Terms
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.