buying your home
Purchase Contract Contingencies
The contract also spells out contingencies, or conditions which must be met in order for the purchase to be completed. Again, these vary from state to state. Which of these might be listed as a contingency in the contract?
The buyer's ability to get financing
Sale of the buyer's current home
Positive home inspection or appraisal results
These are all common contract contingencies, because they may need to be met for the purchase to be made. Buyers who cannot obtain financing or sell their present homes may not have the financial resources to make a purchase. If the home inspection or appraisal reveals an unexpected problem, this could affect what the home is worth, and also the buyer's or lender's purchase decision.