Contingency
Also called: contingencies, inspection contingency, financing contingency
A condition in the purchase contract that must be satisfied, or the buyer can withdraw without losing earnest money.
Common contingencies cover financing, appraisal, inspection, and sometimes the sale of the buyer’s current home. Each carries a deadline, and each is a defined exit if the condition is not met.
Waiving contingencies makes an offer more competitive and moves risk onto the buyer. A waived inspection contingency does not mean skipping the inspection. It means giving up the contractual right to renegotiate or walk based on what it finds.
Related terms
- Earnest moneyA deposit made with an offer to show the buyer is serious, held in trust and credited toward closing.
- Due diligenceThe defined window after acceptance when a buyer investigates the property and can act on what they find.
- REPC (Real Estate Purchase Contract)Utah’s standard residential purchase contract, which sets the deadlines the whole transaction runs on.
- Appraisal gapThe shortfall when a property appraises below the contract price, which the buyer generally must cover in cash.
More in Buying a home
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