What Are Contingencies in a Real Estate Contract?

Contingencies are protections built into the purchase agreement that allow buyers to cancel or renegotiate if certain conditions aren’t met. The main contingencies include:

Inspection Contingency:
Allows time to inspect the home and request repairs or credits.

Appraisal Contingency:
Ensures the home appraises for the purchase price.

Loan Contingency:
Protects you if financing falls through.

Sale Contingency (less common):
Buyer must sell their existing home before closing.

For sellers, I strategically evaluate contingency strength when reviewing offers. For buyers, I help determine what to safely keep, shorten, or remove while staying protected.

Contingencies are powerful — and when used correctly, they make your transaction safer, smoother, and more successful.