Real Estate Glossary | What Is a Contingency Contract?

What Is a Contingency Contract in Real Estate?

Contingencies are specific clauses in contracts that specify a requirement that must be met by one or all parties to be considered a successful agreement and become legally binding. In order to create contingencies, both parties must agree to all terms before signing the contract.

Common contingencies seen in real-state are mortgage, title, home inspection, etc.

If this or any other contingency isn't met, both parties have the legal right to end the contract and create new agreements with other buyers or sellers. Nonetheless, they could choose to negotiate and create new contingencies to pursue the property's transaction.

They are usually tied to "earnest money," which is the initial deposit that the buyer makes when signing a contract. If the contingency isn't met, the buyer must be immediately refunded.

Even though contingencies can be advantageous for staying secure when doing a real estate transaction, it is not recommended to clutter the contract with too many of them. Doing this could lower the prestige of the property and make its demand sink.

If you want to know which contingencies are best for protecting you, whether you're a buyer or seller, the best thing you can do is to contact a real estate lawyer who can walk you through the whole procedure.

Our solutions

beycome™

Legal

Stay Connected with us

Stay Connected

Beycome Florida:
400 NW 26th St,
Miami, FL 33127

Beycome Office:
5701 Sunset Dr #224,
South Miami, FL 33143

Beycome Contact:
804-656-5007
[email protected]
Schedule a call

By searching, you agree to the Terms and Conditions and our Privacy Policy.
IDX information is provided exclusively for consumers’ personal, non-commercial use. It may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information deemed reliable but not guaranteed to be accurate. Listing information is updated daily. All information provided is deemed reliable but is not guaranteed accurate and should be independently verified.

The availability of services and savings can vary by state. See more Information about our services for program details.

Beycome Corp. works with real estate brokerages licensed to do business in multiple states across the country. Beycome Brokerage Realty LLC d/b/a beycome.com is a real estate brokerage licensed to do business in AL, GA, IL, MI, MN, NC, SC and TX. Beycome of Florida LLC d/b/a beycome.com is a real estate brokerage licensed to do business in Fl. Beycome of Connecticut LLC d/b/a beycome.com is a real estate brokerage licensed to do business in CT. A list of our licenses is available here.

Beycome Title LLC, Beycome Brokerage Realty and Beycome of Florida have a business relationship in that all are owned by the same persons.

CalBRE #01737574.TREC: Info About Brokerage Services, Consumer Protection Notice