What is a Contingency

What Is a Contingency in Real Estate?

Home sales can be complex agreements that involve multiple moving parts — and one of the most important is the contingency. But what is a contingency, and how does it impact your home sale or purchase? Here’s what every buyer and seller should know.

What Is a Contingency in a Real Estate Contract?

The word “contingency” means depending on certain circumstances. In real estate, when a property is marked as contingent, it means an offer has been made and accepted, but the sale can only move forward if certain agreed-upon conditions are met.

These contingencies protect both the buyer and the seller by outlining what must happen before closing — giving each party a clear understanding of their rights if the deal doesn’t proceed as planned.

contingencies help protect both buyers and sellers — clear terms lead to smoother transactions.

Common Real Estate Contingencies Explained

Some contingencies are more common than others, but each serves a specific purpose:

• Financing Contingency: Protects the buyer if they can’t secure a mortgage loan.

• Inspection Contingency: Allows buyers to cancel or renegotiate if major issues are found during the home inspection.

• Appraisal Contingency: Ensures the home’s appraised value supports the sale price.

• Title or Deed Contingency: Confirms there are no ownership disputes or liens on the property.

• HOA or Environmental Contingencies: Cover potential issues such as HOA restrictions, termites, or environmental hazards.

You can view my Homebuying Guide to see how contingencies fit into a typical real estate transaction and how they protect your investment.

For additional clarity on how contingencies and contracts work together, visit the National Association of REALTORS® for in-depth professional resources.

How a Contingency Can Impact Sellers

Sellers often see contingencies as a layer of uncertainty, since buyers can sometimes back out if terms aren’t met. However, with the right strategy, contingencies can be managed smoothly. I guide my clients in setting realistic expectations and creating clean, competitive offers that still protect their interests.

If you’re preparing to list your home, check out my post on the Best Realtor for Expired Listings for insight into relisting strategies and seller-focused marketing plans.

Getting Professional Help With Contingencies

Whether you’re buying or selling, working with a local professional helps you navigate these important details confidently. Contingencies may sound intimidating, but with proper planning, they’re simply tools to create a fair, transparent deal.

Have questions about adding or removing contingencies in your next offer? Contact Cindy Burkhardt for expert advice across Citrus and Marion County.