Contingencies in a Real Estate Contract
The conditions that let a buyer walk away without losing the deposit.
What is a contingency in a real estate contract?
A contingency is a condition that must be satisfied for the deal to move forward. If the condition is not met, the protected party — usually the buyer — can cancel the contract and typically recover the earnest money rather than being forced to close.
Common contingencies
- Mortgage/financing — the buyer can cancel if it cannot obtain the loan on the stated terms;
- Inspection — the buyer can walk or renegotiate based on the property's condition;
- Appraisal — protection if the property appraises below the price; and/or
- Title — the buyer can object to defects revealed by the title search.
Why deadlines are everything
Contingencies live and die by their dates. Miss the deadline to exercise or extend one, and the protection can disappear — leaving a buyer committed to close. Tracking contingency deadlines is a core part of managing any agreement of sale.
How Nochumson P.C. helps
Nochumson P.C. drafts and manages contingencies in real estate contracts so a missed date never costs you the deal or the deposit. Contact us to review your contract.
Related articles:
- Agreement of Sale in PA Real Estate: Buyer's & Seller's Guide
- Earnest Money Deposits: Rules & Risks
- Due Diligence in a Commercial Real Estate Deal
- Closing Costs in Pennsylvania
Learn more from Nochumson P.C.: