What condition does a contingency clause usually involve?

A contingency clause in a real estate contract typically involves a condition that must be met for the agreement to move forward. The common scenarios that warrant such clauses are securing financing or passing inspections. These conditions protect the buyer by ensuring that they are not locked into a deal without adequate financial resources or assurance that the property is in good condition.

When a buyer includes a financing contingency, they make the offer contingent upon obtaining the necessary loan approval for purchasing the property. This allows the buyer to back out of the contract without penalty if they cannot secure the financing needed.

Similarly, an inspection contingency allows the buyer to have the property inspected and to potentially back out if significant issues are discovered. This provision safeguards the buyer from unforeseen, costly repairs after the purchase.

The other options involve conditions that typically do not include contingency clauses. Completion of ongoing renovations doesn't necessarily protect a buyer in terms of purchase agreement security, as the property's condition at the time of closing remains paramount. Changing the listing price does not appropriately reflect a contingent condition but rather a negotiation tactic. Similarly, a successful marketing campaign doesn't typically relate to the buyer’s conditions in a purchase agreement; it speaks more to a seller's ability to attract buyers rather than a condition of the contract itself.