What Is a Contingency in Real Estate?
In real estate, a contingency is a condition in a purchase contract that must be met for the sale to go through. If it is not satisfied, the buyer can usually cancel without losing their earnest money deposit. Common contingencies cover financing, the home inspection, the appraisal, and the sale of the buyer’s current home.
Common Types
Financing contingencies protect buyers who cannot get a loan; inspection contingencies allow renegotiation or cancellation after problems are found; appraisal contingencies cover a low appraisal.
Deadlines
Each contingency typically has a deadline, after which it is considered satisfied or waived.
🧮 Calculate It Yourself
Put Real Estate Contingency into practice with these free calculators — no sign-up, nothing stored.
🔗 Related Terms
More Home Buying Terms
- Adjustable-Rate Mortgage (ARM)
- Assessed Value
- Cash-Out Refinance
- Closing Costs
- Closing Disclosure
- Conventional Loan
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.