Redfin

AUGUST 5, 2025

Here are the most common contingency clauses that a buyer may include in an offer to allow them to break their contract and walk away from the deal without losing their earnest money: Inspection contingency: This protects a buyer against purchasing a home that is revealed to be in poor condition or requires major repairs.

Earnest money deposit

Redfin

JULY 10, 2025

Whether earnest money is refundable depends on the contingencies in the purchase agreement. If the contract is canceled due to issues like a failed inspection or financing problems, the buyer typically gets the money back. However, if the buyer backs out for reasons not covered by a contingency, the seller may keep the funds.

Due diligence

Redfin

MARCH 18, 2025

The earnest money is typically held in an escrow account – a neutral third party, such as a title company or real estate brokerage, holds onto the funds until the sale is finalized. If your down payment is already covered, the earnest money can help pay for lender fees, title fees, and other closing expenses.

Closing

Redfin

JULY 9, 2025

It’s also a good time to check your finances. Decide on important terms like earnest money deposits, contingencies (inspection, financing), and closing dates that can make your offer stand out. Once the transaction closes, you’ll receive a final title policy as part of your closing documents.

Pre-approval

Redfin

JUNE 17, 2025

The steps of the due diligence period can include any of the following: Home inspection Pest inspection Appraisal Negotiation of closing costs Title search and title insurance Renegotiations (if applicable due to home inspection) During this period before settlement, the buyer and seller are able to continue negotiations.

Closing

Rochester Real Estate

NOVEMBER 5, 2015

If you made an offer and then found there were significant structural problems, you would be in trouble without a home inspection contingency. Financing Even if you are preapproved for a mortgage when you make an offer, you could still have problems getting a loan from your lender when you need it.

Earnest money deposit

Redfin

MARCH 4, 2025

From finding houses to tour and what financing options you have, theres a lot to learn about buying a home in foreclosure. If the auction accepts financing, make sure you have a pre-approval ready. Lenders will typically clear the title and vacate the property before selling it to you.

Pre-approval

Redfin

JULY 11, 2025

Buyer is unable to secure financing A financing or mortgage contingency protects buyers if they’re unable to get approved for a home loan. Without this contingency, the buyer could be on the hook for the difference, or risk losing their earnest money if they walk away.

Earnest money deposit

Redfin

JUNE 17, 2025

Here are a few of the different types of contingencies you make come across: Home inspection contingency: Allows the buyer to back out of a purchase contract if the home inspection reveals major issues with the property. A lender requires an appraisal before agreeing to provide mortgage financing.

Inspection contingency

Redfin

JUNE 27, 2025

But stretching your finances too thin can lead to years of stress, missed payments, or even having to sell before you’re ready. If major repairs are needed, you may be able to use the inspection report to negotiate repairs or a lower purchase price. Many first-time buyers aren’t aware that closing costs are often negotiable.

Pre-approval

The Close

MARCH 11, 2025

This process involves multiple stages, starting with identifying an FSBO listing to securing appropriate financing and completing the closing procedures. Various financing options exist for FSBO properties, like traditional mortgages, hard money loans, and private investors. For options, check our recommended hard money lenders.

Sales

Redfin

JULY 21, 2025

If you’re having doubts, want to reassess your finances, or simply change your mind, doing so before any paperwork is signed allows for a clean exit without risking earnest money or triggering legal consequences. Common contingencies include: Financing contingency: Protects buyers if they can’t secure a mortgage loan.

Earnest money deposit

HomeLight

FEBRUARY 20, 2025

As of December 2024, 18% of buyers waived the appraisal contingency , with other buyers waiving, for example, inspection contingencies to likewise make their offers more enticing to sellers. The appraisal contingency is there to protect the buyer in case of any issues surrounding your appraisal.

Inspection contingency

Redfin

AUGUST 5, 2025

In a multiple-offer situation, sellers look at a number of different variables between offers, from inspection timelines to appraisal guarantees, to financing terms. Cash offers often outcompete buyers with higher financed offers. This includes waiving the home inspection contingency and moving along toward finalizing the sale.

Earnest money deposit

Rochester Real Estate

NOVEMBER 5, 2015

Depending on what type of financing the potential purchaser is obtaining, the option to receive seller concessions may or may not exist. If a home buyer is obtaining financing from bank, the bank will complete an appraisal. In most cases, inspections are at the expense of the buyer. What are seller concessions?

Purchase and sale agreement

Housing Wire

FEBRUARY 20, 2024

The bill essentially negates as a negotiating tool the waiving of the home inspection contingency , which makes an offer for a home contingent on the results of an inspection. Brian Ashe, who co-sponsored the House version of the legislation. and Canada. Department of Education.

Inspection

Realtor.com

OCTOBER 29, 2020

These are the most common contingencies that are part of your new home closing process: Home inspection contingency: This gives buyers the right to have the home professionally inspected. It’s rarely advisable to waive an inspection contingency. Clear the title. Review your closing disclosure.

Closing

HomeLight

OCTOBER 30, 2020

A cash deal can close in as little as 7 days, while financed home purchases tend to take an average of 45 days to close. And if you add a home sale contingency into the mix (that is, if you need to sell your current home before you can buy a new one), closing the deal can take even longer. Financing issues.

Closing

Norada Real Estate

APRIL 15, 2023

However, the duration can be influenced by several factors, such as contingencies, negotiations, and local regulations. Additionally, the type of financing being used, such as FHA or VA loans, can also impact the length of the under-contract period. Factors that Affect the Length of Under Contract A.

Earnest money deposit

HomeLight

NOVEMBER 8, 2024

This can mean that the buyer’s financing is approved, the inspection contingency is met, or any appraisal concerns are resolved. Factors like buyer financing, required repairs, or the need to finalize paperwork can impact this timeline. What contingencies can impact a pending sale?

Inspection contingency

RIS Media

MAY 19, 2021

Not all sales will have contingencies with them, but most will. Common real estate contingencies include the following: Inspection Contingencies. The most common contingency is the home inspection contingency. The home inspection can lead to some delays in the process, too, for around 10% of cases.

Purchase and sale agreement

HomeLight

JANUARY 13, 2022

Inspection contingencies. Inspection contingencies mean that a buyer can get a home inspected before the deal goes through, and can back out of the purchase with earnest money intact, depending on what the inspector finds. Inspection contingencies can be waived. Appraisal contingencies.

Backup offer

Realty Biz

APRIL 20, 2022

Let’s look at the most common contingencies in an offer and what they mean to buyers and sellers. Common Contingencies Found in an Offer to Purchase. Home Inspection Contingency. One of the most common terms in an offer is the home inspection contingency clause. Mortgage Financing Clause.

Purchase and sale agreement

Windemere Buying

APRIL 12, 2023

Mortgage Lender You need financing to buy a home. Buyers will often include a home inspection contingency in their offer to allow for renegotiation or canceling the contract entirely. After the home inspection, the listing agent will also be the main point of contact for any repair requests.

Pre-approval

Realty Biz

OCTOBER 12, 2021

The top regrets listed were all finance-related, including maintenance, mortgage and other costs being too high. Another big danger associated with maintenance costs is that it has become increasingly more common for buyers to waive the home inspection contingency to try and get their offer accepted.

Inspection contingency

HomeLight

JULY 31, 2022

Some states require that a real estate attorney be involved in every home closing while other states allow real estate agents and title companies to handle it. This is where you’ll make your offer on the price of the home along with how you’ll pay it — cash, a mortgage loan, or seller financing. Appraisal contingency.

Earnest money deposit

Redfin

JANUARY 25, 2021

Though you can technically add any contingency you want to an offer, here are the 9 most common homebuying contingencies to consider. 1) Home inspection contingency. As the buyer you should always order a home inspection. 2) Appraisal contingency. 3) Financing contingency.

Home sale contingency

HomeLight

JULY 6, 2023

So what are the contract stipulations that put a listing into that “Contingent” stage, and how common is it for a property to hang in closing limbo? Here are 5 common contingencies in real estate contracts: Inspection contingency A buyer and their lender understandably want a home inspection to make sure they’re not investing in a lemon.

MLS

HomeLight

MAY 17, 2022

Although sold “as is,” you can typically still get an inspection. Step 3: Figure out your financing. The main reason is the house may not pass an inspection, says Andy Kolodgie, founder of The House Guys operating in Washington DC. “A Your agent will help you write up a bid or offer and advise you on contingencies to include.

Inspection

HomeLight

SEPTEMBER 1, 2022

These programs include: Connecticut Housing Finance Authority (CHFA) : The Connecticut Housing Finance Authority offers down payment assistance to first-time buyers in the form of a second mortgage called a DAP loan. Both the down payment and closing costs can be financed up to $20,000, with an interest rate of just 1.0%.

Earnest money deposit

HomeLight

JULY 31, 2020

This is important: if your real estate agent puts in an all-cash offer on your behalf, they will not include a financing contingency. The seller makes decisions based on the terms of your offer, including contingencies. So in many cases, making an all-cash offer means you won’t even attempt to obtain financing at all. (No

Purchase and sale agreement

HomeLight

JULY 26, 2022

Maybe there are liens or judgments against the title — or maybe they don’t actually own the home they’re trying to sell. Agents] provide the contract, we’ll make sure everything is signed and dated just like it needs to be, we’ll make sure their lender gets it, and it gets sent to the title company. Appraisal contingency.

Earnest money deposit

HomeLight

MARCH 6, 2023

Consider the following down payment assistance programs in the Bay Area: Golden State Finance Authority (GSFA) : The GSFA offers several programs that can help low-to-moderate-income homebuyers in California purchase a home by providing up to 5.5% But it’s now possible to submit an offer with contingencies and still have that offer accepted.”

Earnest money deposit

HomeLight

MARCH 2, 2023

My Home California Down Payment Assistance : California Housing Finance Agency (CalHFA), offers first-time homebuyers deferred payment loans through both FHA and conventional programs, to assist with down payment and/or closing costs. Borrowers must meet specific income requirements and must contribute at least 3% of the purchase price.

Closing

Realty Biz

NOVEMBER 11, 2020

The home could be subject to a few different types of contingency. Let’s have a look at the most common types of contingency you are likely to see. Home Inspection Contingency. The purchase of the property can be contingent on the home inspector’s report. The Mortgage Financing Contingency.

Backup offer

HomeLight

OCTOBER 1, 2020

So as a buyer, you should have a contingency in your contract to protect you in case you can’t get proper financing for the home. Contract contingencies are used in most real estate contracts, and it’s not entirely uncommon for deals to fall through. Financing contingency. Inspection contingency.

Earnest money deposit

HomeLight

NOVEMBER 9, 2021

A traditional home sale in which a seller lists with an agent and a buyer finances with a mortgage takes approximately 18-30 days to go under contract, plus an additional 30-45 days to closing. Buyer’s financing method. Most buyers get an inspection, which may initiate repairs or re-negotiations. Buyer’s financing method.

Purchase and sale agreement