What is a contingency?



A contingency is a condition on the sale put into the contract by either the buyer or seller to protect against specific eventualities.
Examples of common contingencies are: a requirement that the buyer obtain financing or sell the current home; the seller has a home inspection done; or the seller must repair certain items before settlement. Contingencies can be removed by an addendum to the contract, or they can expire if a time limit is specified in the contract.



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