Contingency
A contract condition that must be satisfied—or waived—for the transaction to continue.
Common contingencies include inspection, appraisal, loan approval, and sale of a buyer’s current home.
Each contingency has a deadline in the purchase agreement. Missing a deadline can waive your right to cancel without penalty.
Sellers may prefer shorter contingency periods in competitive markets; buyers should only agree to timelines they can meet.
Related terms
Need this explained for your deal?
Call Dr. Jan Duffy at (702) 842-1192 or visit askdrjanduffy.com for Q&A.