In real estate, "contingent" means that a seller has accepted a buyer's offer, but the sale depends on certain conditions or contingencies being met before the transaction can be finalized. These contingencies are specific requirements outlined in the purchase agreement that must be satisfied for the deal to proceed to closing. If these conditions are not met, the buyer can typically back out of the sale without penalty, and the property may go back on the market
. Common contingencies include:
- Home inspection contingency: The sale depends on the home inspection results. If issues arise, the buyer can negotiate repairs, price adjustments, or cancel the contract
- Financing contingency: The buyer must secure mortgage financing. If the buyer cannot obtain the necessary loan, they can withdraw their offer
- Appraisal contingency: The home must appraise at or above the agreed purchase price. If it appraises lower, the buyer can renegotiate or cancel
- Title contingency: Ensures the seller has clear ownership of the property. Problems with the title can allow the buyer to back out
- Home sale contingency: The buyer's purchase depends on selling their current home first
A home listed as "contingent" is still technically on the market but under contract, pending these conditions being met. If contingencies are satisfied, the status often moves to "pending," indicating the sale is moving toward closing with no further conditions
. Sellers may accept contingent offers but sometimes include clauses (like a "kick-out clause") allowing them to continue marketing the property and accept backup offers in case the contingent buyer fails to meet the conditions
. In summary, "contingent" in real estate signals an accepted offer that is conditional on certain factors such as inspections, financing, or sale of another property, protecting buyers from being locked into a deal if these conditions are not fulfilled
