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Real Estate vocabulary · Contracts, Deeds & Title

Contingency

Meaning in real estate, with examples

/kənˈtɪndʒənsi/nounCommon term

In real estate, contingency means: A condition in a purchase contract that must be met before the sale can go ahead, such as the buyer getting a mortgage or a good inspection report.

In Turkish: şart maddesi, koşul, koşullu madde

How it is used

Very common in US contracts: financing, inspection and appraisal contingencies. If a contingency is not met, the buyer can usually withdraw and get the earnest money back. An offer without contingencies is more attractive to sellers but riskier for buyers.

Example sentences

  1. Our offer includes a financing contingency, so we're protected if the loan is refused.

  2. The buyers waived the inspection contingency to win the house.

Common collocations

  • financing contingency
  • inspection contingency
  • waive a contingency
  • remove contingencies
  • contingent offer
  • purchase agreementA written contract between buyer and seller that sets out the price, conditions and dates of a property sale before ownership is transferred.
  • home inspectionA detailed check of a home's condition by a trained inspector, covering the structure, roof, plumbing, wiring and heating before the purchase is completed.
  • earnest moneyA deposit a buyer pays soon after an offer is accepted to show they are serious. It is usually held by a third party and counted toward the price at closing.
  • appraisalA professional estimate of how much a property is worth, made by a qualified appraiser, often because a bank needs it before lending.
  • fall throughTo fail to happen or be completed, said when a sale or deal is cancelled after an offer has been accepted.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Contracts, Deeds & Title

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