In this quick video, John Aylesworth gives an overview of contract contingencies and what can happen if a contingency isn't met.

What is a contingency in a real estate contract? 

In real estate, a contingency is a condition or requirement of the contract that must be met before the transaction can proceed to closing.  

These are legal clauses that help protect both parties by ensuring that specific conditions are satisfied before completing the sale. 

Typically, contingencies must be satisfied within a specified period of time after the purchase agreement is signed by both parties.  

Common contingencies include: 

• Attorney review  
• Home inspection  
• Mortgage Financing 
• HOA Documents 
• Insurability 
• Clear Title 

If a contingency is NOT fulfilled, the buyer or seller may be able to cancel the contract without penalty. This lets the buyer get any earnest money back, and frees the seller to work with another buyer. 

Feel free to schedule a call with John to learn more about real estate contracts and closings.