The buyer is waiting to get the home inspection report.The buyer’s mortgage pre-approval letter is still pending.These are some common contingencies that could delay a contract: So when “contingency” appears in the listing itself, “it means the sellers have already accepted an offer on the property (at least regarding price), but there are still steps to clear before the contract goes fully pending in the system,” says Stephanie Crawford, a Realtor® in Nashville, TN. If the buyer is having trouble getting a mortgage, or the property appraisal is too low and the bank won’t increase the loan, or there’s some other problem with getting a mortgage, a contingency clause means that the contract can be broken with no penalty or loss of earnest money to the buyer or seller. “A contingency in a deal means there’s something the buyer has to do for the process to go forward, whether that’s getting approved for a loan or selling a property they own,” explains Jimmy Branham of the Keyes Company in Coral Springs, FL.

They can make or break a real estate sale, but what exactly is a contingent offer? We’ve all been there, and we’re here to help clear up the confusion.Įvery home sale is dependent upon certain contingencies. When you see the word “ contingency” in a real estate listing, it may be one of those real estate terms that make you go, “Huh?” But don’t sweat it.

Update in real estate lingo