Contingencies are conditions written into a home purchase agreement that must be met for the sale to go through. These are like safety nets for both buyers and sellers. Common contingencies include:
- Financing Contingency: The buyer must secure approval for a mortgage.
- Inspection Contingency: Allows the buyer to have the home inspected and to request repairs or adjustments based on the findings.
- Appraisal Contingency: Ensures the property is valued at a minimum specified amount, which is necessary for financing.
- Sale Contingency: The buyer’s ability to go through with the purchase may depend on selling their current home.
Another example is, you find a home and you love all of the appliances. If the seller did not offer to sell the appliances with the home, you can make that a ‘contingency’ or condition to buy their home.
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