Contingencies protect you and allow you to walk away from the deal if necessary, without legal consequences. There are five basic types of contingencies.


Your offer is subject to obtaining financing for the purchase. Most likely, you will have a pre-approval letter at the time of offer. However, there are still many factors after an offer is accepted that may impact whether or not you can obtain financing.


Any offers that are subject to financing will also be subject to appraisal. This appraisal is for the bank to verify the property is worth what they’re securing the loan against. If the property fails to appraise at or above the purchase price, the bank’s loan to value will be on the appraised value, not the value of the property. Learn more about the Appraisal Process here.

Subject to Sale

When a seller has a property to sell, they will make an offer subject to the sale of their current property. In most cases, sellers require an option-hour clause (sometimes referred to as the 72-hour clause) that allows sellers to keep their home active on the market until the buyer has secured a buyer for their property.


Most offers will come with a variety of items that a buyer wishes to include with or exclude from the sale. Any fixture that requires a tool to remove from the property is considered real property and will stay unless specifically mentioned otherwise. Any personal property, items that can be removed without a tool, may be requested to remain by the buyer as well. Common examples of personal property would include appliances, home warranties, etc.


You will most likely hire a home inspector to do a whole house inspection, which is a visual inspection of all the major mechanicals in the home. There may be other inspections done based on any of your concerns with the property. If any deficiencies are identified by inspections that weren’t previously disclosed, you will have an opportunity to request repairs. If a repair request comes in, the seller will have the opportunity to accept, reject or counter your proposal.

There can also be other provisions on which the deal can be contingent. If you have questions, reach out to us or ask your Ruhl&Ruhl Realtor.

Don’t forget about everything you need to prepare between the offer and closing!