What Are Contingencies

Contingencies are conditions that must be met in order for a home sale to be finalized. Depending on which party arranges for contingencies, they act as an additional measure of assurance for the buyer, seller or both. If they are not met, it is likely that the sale with not be closed.

What are examples of contingencies?

An example of a contingency is the unexpected need for a bandage on a hike. The definition of a contingency is something that depends on something else in order to happen. An example of contingency is a military strategy that can’t go forward until an earlier piece of the war plan is complete.

What does contingencies mean on a house?

First, let’s define what “contingent” means in terms of a home that’s on the market and its availability for purchase. A contingent house listing means that an offer on a new home has been made, the seller has accepted it and the home is now under contract.