When buying a house, "contingent" means that the seller has accepted the buyer's offer, but the sale depends on certain conditions or contingencies being met before the deal can be finalized. If these conditions are not satisfied, the buyer can back out of the contract without penalty, and the house typically goes back on the market
. Common contingencies include:
- Home inspection contingency: The sale depends on the home inspection results. If major issues are found, the buyer can negotiate repairs, ask for a price reduction, or cancel the deal
- Financing contingency: The buyer must secure mortgage approval. If the buyer cannot get financing, they can withdraw from the purchase
- Appraisal contingency: The home must appraise at or above the purchase price. If it appraises lower, the buyer can renegotiate or cancel
- Title contingency: The property title must be clear. If title issues arise, the buyer can back out
- Home sale contingency: The buyer’s purchase depends on selling their current home first
A contingent offer protects the buyer from being locked into a purchase if unexpected problems occur, such as financing falling through or major home defects. Sellers may accept contingent offers but sometimes keep the home on the market with a "kick-out clause" to allow other buyers to make offers if the contingency is not resolved quickly
. In summary, "contingent" means the sale is underway but conditional on specific requirements being met before closing, providing an "out" for buyers if those conditions fail
