Definition
A contingency is a condition written into a real estate purchase contract that must be satisfied for the transaction to move forward. Common contingencies include financing (loan approval), inspection, appraisal, and the sale of the buyer's current home.
Each contingency carries a deadline. If the condition is not met or waived by its deadline, the buyer typically has the right to cancel and, in many cases, recover their earnest money.
Why it matters
Contingency deadlines are the backbone of a transaction's timeline. Letting a contingency period lapse without action can unintentionally waive a buyer's protections or default the contract, a serious, avoidable mistake.
Because contingencies cluster early and overlap, a system that tracks each deadline and surfaces what is due next protects both the client and the agent.
Related terms
- Earnest MoneyA good-faith deposit a buyer makes to show serious intent to purchase, held in escrow until closing.
- EscrowA neutral third-party arrangement that holds funds and documents until the conditions of a transaction are met.
- Days on MarketThe number of days a listing has been active on the MLS, a common signal of demand and pricing.
Realm tracks every contingency deadline on the transaction and flags at-risk milestones before they lapse.