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Contingencies PDF Print E-mail
Selling a Home - Offers & Negotiation

A contingency is an "out" in a contract in case certain conditions are not met by a certain date. Contingencies are there to protect buyers, not you, but they are common in most contracts.

A mortgage or financing contingency lets the buyers back out if they can't find a lender to give them a mortgage commitment at a certain rate by a certain date. If you're fairly certain the buyers can get a mortgage, you may want to stop showing your home.

An inspection contingency means the house must pass inspection by a professional house inspector hired by the buyer.

An attorney approval rider gives the buyer's attorney the right to make changes to the contract.

The buyer may put in a contingency of selling the buyer's current residence.

Buyers may also try to insert contingencies upon obtaining parking, getting a job, selling their current house -- even admittance to a nearby private golf course club, if there is one. As a seller, you don't have to accept all these contingencies in a contract, especially if you're in a hot market.

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