What is it?
Contingencies are the part of the offer that sets what must be satisfied for the transaction to continue. If a contingency is not satisfied, this can result in a buyer being able to back out and have earnest money returned; or a seller being able to back out and keep the buyer’s earnest money. A contingency typically specifies the following: Who is responsible; when it is due; and what happens if it is not met.
What Are Common Contingencies?
There are several contingencies in nearly every offer. The most common in our market include:
Financing/Appraisal
Lead Based Paint
Inspection
Title
HOA/Resale Certificate Review
Well Testing
Septic Inspection