Definition
This contract language says you won't go through with the purchase if certain conditions aren't met—like passing inspection or getting financing approval. Contingencies protect you by giving you an exit if something goes wrong.
Where you’ll meet it
How do I make an offer without overpaying?
See it in Buying my first home · Step 4About this term
Common contingencies: inspection, appraisal, financing, title, sale of another property. Protects buyer allowing cancellation if unsatisfied. Seller prefers fewer contingencies. Contingency removal signals satisfaction. Clear language prevents disputes. Removal deadlines critical. Extensions require mutual agreement. Multiple contingencies strengthen buyer position. Waiving contingencies weakens buyer but strengthens offer. Balancing buyer protection vs. offer strength. Strategic contingency use improves negotiation.
Pro Tip
Maintain strong contingencies to protect yourself, but understand that too many contingencies will weaken your offer in competitive markets.
Example
Inspection contingency allowed cancellation if major defects discovered.