What are the standard contingencies in a real estate contract?

As a lawyer, I can provide legal advice regarding the standard contingencies that are typically included in a real estate contract.

Essentially, a contingency is a condition that must be met before closing on the property. While contingencies may vary depending on the specific circumstances of each transaction, there are a few standard contingencies that are commonly included in most real estate contracts.

1. Financing Contingency:

   This contingency is included in almost every real estate contract. It allows the buyer to back out of the purchase agreement if they are unable to secure financing for the purchase. In most cases, the contingency sets a specific deadline by which the buyer must secure financing. If financing cannot be secured by that deadline, the buyer may cancel the purchase agreement without penalty.

2. Inspection Contingency:

   This contingency allows the buyer to have the property inspected by a professional inspector to identify any problems that may exist. If issues are discovered that the buyer is not willing to accept, they can negotiate with the seller to resolve or walk away from the deal.

3. Appraisal Contingency:

   This contingency is also commonly included in real estate contracts. It enables the buyer to have the property appraised to determine its fair market value. If the appraisal value is lower than the purchase price, the buyer can either negotiate with the seller to lower the price or terminate the contract.

4. Title Contingency:

   This contingency is another standard part of real estate contracts. It enables the buyer to have the property title inspected to ensure that it is free of any liens or other legal issues that may prevent them from taking ownership.

5. Home Sale Contingency:

   This contingency allows the buyer to back out of the purchase agreement if they are not able to sell their home by a specified date. It is typically used when the buyer needs the sale of their current home to finance the purchase of their new home.

It is important to note that while these contingencies are standard, they may vary depending on the jurisdiction or specific circumstances of the transaction. It is always advisable to have an experienced real estate attorney review any contract before signing to ensure that your interests are protected.