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the statements in this video are designed to be informational only and do not necessarily reflect the terms of the contract you may have with the seller always refer to your own contract and counter offers if any for specific details of the terms contained within it this video is designed to inform you as to the role that contingencies and the contingency removal play as part of your home purchase process you can think of contingencies as a right to cancel uh contingency is there to give you the buyer a right to cancel the sale if something should happen that changes your ability to buy this property or changes your interest in the property there are three common contingencies uh the first one would be for your loan that is that the purchase is subject to you obtaining your actual loan the second is for the appraisal meaning that the purchase is subject to your uh to the to the property appraising for the price you agreed to pay for it the third is your physical inspections and invest