In a real estate sales contract, what does the term “contingency” mean?
Sales contracts typically contain several “contingency” clauses, which are conditions on which the sale depends. For example, with a mortgage contingency, if the buyer is not able to receive final approval for a home loan within the specified timeframe, neither the buyer nor the seller is required to complete the transaction.
Other common contingency clauses are related to inspection issues (such as a general inspection, pest inspection or radon testing that doesn't go well, for example) or to the buyer’s need to sell a current home before being able to purchase the second home.
Realtors with The McKenna Group are trained to clearly explain these types of contingencies to you. Just call us at 301-703-8605.
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