Contingency
A condition in your purchase contract that must be met, or you can back out without penalty.
In plain English
A contingency is a clause in your purchase agreement that makes the sale conditional on something specific happening — like the home passing inspection, appraising at value, or you securing financing. If the condition isn't met, you can typically cancel the contract and keep your earnest money.
Contingencies are your main protection against something going wrong after you're under contract — waiving them to make your offer more competitive is a real risk worth understanding first.
Where you'll run into it
Guides and tools on TheBuyingPath that cover contingency in context.
Related terms
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