Definition
A condition in a purchase contract that must be satisfied or waived for the transaction to proceed, allowing termination if unmet.
Example
The buyer terminated under the inspection contingency and recovered the full earnest money deposit.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Contingency mean in real estate?
A condition in a purchase contract that must be satisfied or waived for the transaction to proceed, allowing termination if unmet.
How is Contingency used in practice?
The buyer terminated under the inspection contingency and recovered the full earnest money deposit.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.