What is a contingency?
When a contract to purchase a home includes a contingency, this means the deal is contingent on (conditional, subject to, depends on) something for it to move forward. In other words, it is contingent on something the buyer must do. If a contingency clause is written into the contract, and the condition is not met, the buyer can break the contract without penalty.
Several types of contingencies are shared in real estate contracts. The buyer may include a home inspection contingency (to complete an inspection of the property), a financing contingency (to obtain a mortgage for the purchase), or a home sale contingency (to sell their current home before purchasing the new one).
Contingency clauses usually specify a date by which these conditions must be met. If they are not met by the deadline, the buyer can request an extension, or the contract may be canceled. You don't want to try to go it alone. A buyer's real estate agent will help determine what contingencies to include in the offer to purchase, so all their bases are covered.