The Process
What are contingencies in a home purchase contract?
Updated Jul 1, 2026
The short answer
Contingencies are conditions written into a purchase contract that must be met for the sale to proceed, and they protect your deposit if things fall through for a covered reason. Common ones include financing, appraisal, inspection, and sale-of-current-home contingencies. Waiving contingencies can make an offer more competitive but removes those protections, putting your earnest money and more at risk.
Key points
- Conditions that must be satisfied to close.
- Common types: financing, appraisal, inspection, home-sale.
- They protect your earnest money if a covered issue arises.
- Waiving them raises both competitiveness and risk.
Balancing strength and safety
In competitive markets buyers sometimes waive contingencies to stand out. Understand exactly what protection you are giving up before doing so, because it can mean losing your deposit if the deal collapses.
Sources
Every claim above traces to a public government source.