Contingency

A contingency is a condition written into the purchase contract that must be satisfied for the sale to move forward, and that lets a buyer back out and typically recover their deposit if it is not met. The most common are the inspection contingency, the financing or mortgage contingency, and the appraisal contingency. Each has a deadline, and missing a deadline can mean waiving the protection. In competitive markets some buyers waive contingencies to strengthen an offer, which raises their risk. See real estate contingencies explained.