Contingencies Home Buyers Should Be Familiar With
During the home buying process, a buyer has to decide which contingencies to include in their purchase
offer. While there are many types of contingencies, here are the most common.
- A home inspection contingency allows the buyer to bring in professionals to inspect the property. If
deficiencies are found, the buyer can negotiate with the seller to correct them. - A financing contingency allows a specified amount of time for the buyer to secure a loan or other
type of financing to purchase the home. - A home sale contingency makes the purchase dependent on the sale of the buyer’s home by a
specific date. If the buyer’s home doesn’t sell by the specified date, the contract is terminated.
While these are the most common contingencies, a number of others also exists, such as inspections for
radon, mold, pests, or asbestos.
Once a contingency has been satisfied, the buyer and seller both sign a document that removes the
the contingency from the purchase contract.