Contingencies

Contingencies are the clauses a buyer notes on their offer that state that their offer is valid "contingent" upon the buyer or seller meeting certain expectations. The most common contingencies relate to financing, inspection, and title.  

  • A financing contingency will describe the relevant details of the buyers mortgage loan and provide the buyer with a set amount of days in which time they must be approved before the offer is made invalid.
  • An inspection contingency will give the buyer the right to have the property inspected and will permit the buyer to rescind the offer if the inspection results are unsatisfactory to the buyer.
  • A title contingency will give the buyer time to inspect government records and ensure that the property is indeed the property described and that it has a title free of liens.

A buyer can request essentially any contingency in a purchase offer. The seller is not required to accept any contingency. Each case is negotiated between the two parties.