What are contingencies when buying a house?

Contingencies are optional clauses in a real estate contract that state something must happen before closing — essentially, deal-breakers. If the contingency isn't met, the buyer can walk away with their deposit. If a buyer wants to end the sale for a reason other than the ones listed in the agreement, they may have to forfeit their deposit.

Are contingencies required in home purchase contracts?

Contingencies are optional clauses, but they can provide a necessary layer of protection for both buyers and sellers. Some, like the home inspection contingency , are fairly common, but they can be modified or removed to make an offer more attractive . A non-contingent offer — i.e., one with no conditions — might stand out if the seller wants to move fast.

What contingencies should I put in my offer?

Most home buyers may want to protect their investments by including one of these contingencies in their offers: inspection , financing or appraisal , or title contingencies.

Can I make an offer on a house that is contingent?

You can make an offer on a home listed as contingent , but unless the seller has a kick-out clause in their current purchase agreement, they may not be able to accept your offer. Some sellers simply like to line up back-up offers.

Jessica Johansen

Content Project Manager

Jessica Johansen has been part of Clever's editorial team for three years. She has extensive knowledge of discount brokers, cash buyers, and flat fee MLS companies and currently oversees content on how to sell without a realtor. For four years before Clever, Jessica produced educational and technical guides covering topics like self-reliance and airline safety.

Expertise: Traditional home selling, selling without a realtor

Education: BA English Language, Brigham Young University

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