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What are examples of contingencies?

A contingency is a potential occurrence of a negative event in the future, such as an economic recession, natural disaster, fraudulent activity, terrorist attack, or a pandemic.

Why would a seller accept a contingent offer?

In simple terms, it allows the seller to keep their house on the market after accepting a contingent offer. If the seller gets another offer, they must give the original buyer a specified window of time to close. If the buyer does not close in time, the seller can kick them out and accept the other offer.

Can a seller back out of a contingent offer?

To put it simply, a seller can back out at any point if contingencies outlined in the home purchase agreement are not met. These agreements are legally binding contracts, which is why backing out of them can be complicated, and something that most people want to avoid.

What is a contingency in real estate example?

For instance, if a seller offers a certain price and you, as the buyer, say the price is fine (provided the home inspection comes back clean), you have made a contingent real estate contract. In this case, the sale of the house depends on the inspection not having problems defined in the contract.

What does contingency mean in a contract?

A contingency clause can be considered a type of escape clause for those involved in the contract. It allows one party to cancel a deal if certain requirements are not met, though the party benefiting from the clause has the right to waive it.

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What does contingency period mean?

What Is a Contingency Period? The contingency period refers to a time period that starts the date an offer is accepted and ends on the contingency removal date, which is a date named in the accepted offer.

How do contingencies affect a sales contract?

The contingency clause gives a party to a contract the right to renegotiate or cancel the deal if specific circumstances turn out to be unsatisfactory. An appraisal contingency gives the buyer the right to back out if a professional property appraisal comes in lower than a specified minimum.

Why would a house be contingent for months?

A property listed as contingent means the seller has accepted an offer, but theyve chosen to keep the listing active in case certain contingencies arent met by the prospective buyer. If a property is pending, the provisions on a contingent property were successfully met and the sale is being processed.

What are examples of contingencies?

A contingency is a potential occurrence of a negative event in the future, such as an economic recession, natural disaster, fraudulent activity, terrorist attack, or a pandemic.

What is a settlement contingency?

A sale and settlement contingency states that the potential buyer is trying to sell their current home but has not yet received an offer. A settlement contingency states that the buyer has an offer on their home or has a contract in hand, but the closing has not yet taken place.

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What are examples of contingencies?

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