Contract contingencies explained
Home inspection, financing, and appraisal contingencies. When to use them and when to waive.
What contingencies are
Contingencies are conditions in your contract that must be met for the sale to proceed. If a contingency is not satisfied, you can typically withdraw from the contract and get your earnest money deposit back. They are your safety nets in the transaction.
Home inspection contingency
Gives you the right to have the home professionally inspected. In Virginia, you typically have 7 days to complete the inspection and negotiate repairs. If you discover serious issues, you can ask for repairs, a price reduction, or terminate the contract.
Financing contingency
Protects you if your mortgage loan falls through. If your lender denies your loan for a legitimate reason, you can terminate the contract and receive your earnest money back. The financing contingency deadline is typically 21-30 days from ratification.
Should you waive contingencies?
In competitive markets, some buyers waive contingencies to make their offer stronger. This is risky. Waiving the inspection contingency means you accept the home as-is. Waiving the financing contingency means you risk losing your deposit if your loan falls through. Never waive contingencies without understanding the risk.
Ready to get started?
smover tracks every deadline and explains every document so you never feel lost.
Start your search