What Is Contingency?
A condition written into a purchase contract that must be met for the transaction to proceed, such as financing approval, a satisfactory inspection, or an appraisal.
Contingency across 5 exams
Contingency appears on the following exams. Each defines it in the context candidates are tested on:
- Real Estate
- A condition written into a purchase contract that must be met for the transaction to proceed, such as financing approval, a satisfactory inspection, or an appraisal.
- NC Broker
- A condition in a purchase contract that must be satisfied for the contract to remain binding. Common contingencies include financing approval, home inspection, and appraisal.
- IL Broker
- A condition that must be satisfied before a buyer's obligation to purchase becomes binding. Common contingencies include home inspection, financing approval, and appraisal. Brokers must clearly communicate contingency terms and deadlines to all parties.
- FL Broker
- A condition or requirement that must be satisfied for a contract to be binding. Common contingencies in real estate include inspection contingencies, financing contingencies, and appraisal contingencies.
- AZ Salesperson
- A provision in a purchase contract that allows the buyer or seller to cancel or renegotiate the deal if a specific condition is not met, such as obtaining financing, passing inspection, or selling a current home.