What is a contingency?

In terms of a real estate purchase agreement, a contingency is a contractual requirement that must be completed in order for the purchase to be completed. Contingencies are added as terms to the written purchase contract that both the buyer and seller agree to.

Common contingencies include the following:

  • Clear title
  • Buyer's mortgage approval
  • House inspection
  • Sale of current property
  • Lead-based paint inspection
  • Homeowners' Association (HOA) documents
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