A contingency is a condition that must be met in order for a real estate contract to become binding. Contingencies are included in the contract to protect the buyer and the seller, and to ensure that certain conditions are met before the sale can be completed. Some common contingencies that may be included in a real estate contract include:
These are some of the most common contingencies found in real estate contracts, but there can be others depending on the case by case. Contingencies give buyers and sellers a way to negotiate and protect their interests during the buying and selling process. Contingencies can also be added or removed during negotiation, as long as both parties agree.