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7 FAQs About Contigency Removal Forms for Sellers

If you’re selling a house, you likely have questions about all of the paperwork that goes along with the selling process. Find out everything you need to know about contingency removal forms below, so you’re prepared once you find the right buyer.
If you’re selling a house, you likely have questions about all of the paperwork that goes along with the selling process. Find out everything you need to know about contingency removal forms below, so you’re prepared once you find the right buyer.

Any good real estate agent can tell you there’s a lot more to the home selling process than meets the eye. Aside from marketing and staging your home to finding the right buyer, there’s a myriad of paperwork to fill out and review throughout the selling process.

One of the most important forms sellers should be aware of is the contingency removal form. While your real estate agent can help you with any specific paperwork questions, it’s important to understand the basics of a standard contingency form.

1. What does notice to remove contingency mean?

A contingency form is also known as a notice to remove contingency. When a buyer makes an offer on a home, this offer generally comes with contingencies. These contingencies could range from home inspection results to reports for previous insurance claims. The notice to remove these is made when a buyer is confident in the condition of the home and ready to close the deal.

In some states, however, contingency removals might be confused with a notice to perform. In this instance, a notice to perform may be delivered from the seller, asking the buyer to fullfil their responsibility (like getting an appraisal) to move forward in the process.

2. How do I remove a loan contingency?

Typically, it is the responsibility of the buyer to remove contingencies, not the seller. The seller may request the buyer remove these contingencies to speed up the process and move into escrow.

Contingencies are removed in different ways depending on the state you live in. Some might require buyers to submit a contingency removal form (like in California), while others automatically remove contingencies on a certain date that both parties agree upon.

3. Does the seller sign the contingency removal form?

While the rules vary across states, typically both the seller and the buyer will sign the contingency removal form, and both parties will receive a copy of the form. The signing is usually handled by both the listing agent and the buyer’s agent, so you’ll be notified when it’s time for you to sign.

4. What is a contingency period?

The contingency period is the time after you accept a buyer’s offer, up until they remove all contingencies. This date is usually predetermined at the time of acceptance and typically spans 17 days.

During the contingency period, it is the buyer’s responsibility to arrange for the home appraisal, inspection, and mortgage approval. This allows the buyer to back out if there’s anything troubling on the inspection report or can cause the deal to fall apart if the buyer cannot secure sufficient funding.

5. Is a shorter contingency period better?

In general, a shorter contingency period is better for sellers, while a longer contingency period favors buyers. A shorter period helps sellers move more aggressively and close on their home sooner. A longer period allows buyers more time to thoroughly investigate the property to ensure it is up to their standards before finalizing their purchase.

6. What happens after all contingencies are removed?

After all contingencies are removed, the buyer’s offer is now binding — there are no escape hatches to get out of the deal legally. At this point, the seller must also move on any repairs they agreed to make before closing on the home. The contingency removal form allows sellers peace of mind that a buyer is serious, so they can now spend money on repairs without worrying the deal might fall through.

7. Do contingency rules vary by state?

While the general contingency process follows the same basic steps, there are different rules by state. The best way to know what to expect during your contingency process is to connect to your local real estate agent.

Your agent can help walk you through any paperwork questions you have, from contingency removal forms to the rest of the documents. Clever can connect you with a talented real estate agent near you.

All Clever Partner Agents are vetted and offer reduced commission. Rather than spending 3% on listing services, your Clever Partner Agent will only charge you $3,000 (and 1% for homes over $350,000). Learn more by reaching out to a Clever Partner Agent today.


Jamie Ayers

Jamie is the Director of Content at Clever Real Estate, the free online service that connects you with top real estate agents and helps you save thousands on commission. In the past, Jamie has managed columns for clients in a variety of leading business publications, including Forbes, Inc., CEO World, Entrepreneur, and more. At Clever, Jamie's primary goal is to provide home sellers, buyers, and investors with the information they need to successfully navigate the ins and outs of the real estate industry.

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