what is contingent in real estate

what is contingent in real estate

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In real estate, "contingent" means that the seller has accepted a buyer's offer, but the sale depends on certain conditions or contingencies being met before the transaction can close. If these conditions are not satisfied, the sale may fall through and the property could go back on the market

. Common contingencies include:

  • Appraisal contingency: The sale depends on the home appraising at or above the purchase price. If the appraisal is low, the buyer can withdraw or renegotiate
  • Inspection contingency: The buyer has the right to inspect the property and request repairs or cancel the deal if significant problems are found
  • Financing contingency: The buyer must secure mortgage financing. If they cannot obtain a loan under agreed terms, they can back out
  • Title contingency: Ensures the seller has clear ownership. If title issues arise, the buyer can cancel the contract
  • Home sale contingency: The buyer’s purchase depends on selling their current home first

There are also variations of contingent status, such as "Contingent: Continue to Show" where the seller still shows the home and may accept better offers, or "Contingent: No Show" where the seller stops showing the home but contingencies remain to be met

. In summary, a contingent listing means the property is under contract but the sale is not final until all contingencies are resolved. This status protects buyers by allowing them to back out without penalty if certain conditions are unmet

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