Contract Contingencies: Everything You Need to Know
Contingencies are actions or conditions that must be met before a real estate contract becomes a binding agreement. Contingencies protect the buyer and seller, and both parties must agree to the contingency terms for the agreement to be legally enforceable. These clauses allow buyers or sellers to back out of the deal if one or more of the contingency requirements are not met. Contingencies are common in the real estate industry , so you should be familiar with them if you plan on buying or selling a house in the near future. This article covers common contingencies in real estate and helpful tips on how to use contingencies as a buyer or seller in today’s market. Common contingencies A positive aspect of real estate contingencies is that there are only a few that you’ll run into while buying or selling a house, making it easier to remember the implications of each. Below are the most common contingencies you’ll encounter when buying or sell...