A contingent house in real estate refers to a property for which the seller has accepted an offer from a buyer, but the sale is dependent on certain conditions or contingencies being met before the transaction can close. This means the house is under contract, but the deal is not finalized yet, and there is still a possibility the sale could fall through if the contingencies are not satisfied
. Common contingencies include:
- Home inspection contingency: The sale depends on the results of a home inspection. If issues are found, the buyer can negotiate repairs, request financial compensation, or back out of the deal
- Appraisal contingency: The sale depends on the home appraising at or above the agreed purchase price. If the appraisal is low, the buyer can withdraw or renegotiate
- Financing contingency: The buyer must secure mortgage financing. If they cannot get a loan, the sale can be canceled without penalty
- Title contingency: Ensures the seller has clear ownership of the property. If title issues arise, the buyer can back out
- Home sale contingency: The buyer’s purchase depends on selling their current home first
There are different types of contingent statuses, such as "Contingent: Continue to Show," where the seller still shows the house and may accept better offers, or "Contingent: No Show," where the seller stops showing the property but contingencies remain to be met
. In summary, a contingent house is one that is under contract but still subject to certain conditions being fulfilled before the sale can be completed. If those conditions are not met, the house may go back on the market
