What does a contingency contract mean
When you’re buying a home, the “what ifs” are handled, or at least mitigated, through contingency contracts. What are contingencies? They are the clauses in your contract that give you an out if something unforeseen arises. A contingent contract is an if-then agreement that states which actions under certain conditions will result in specific outcomes. Contingent contracts usually occur when negotiating parties fail to reach an agreement. The contract is characterized as "contingent" because the terms are not final and are based on certain events or conditions occurring. What does contingent mean? Contingent real estate offers require something to happen before the deal can close -- for instance, you must get approved for a mortgage.