What might a buyer be required to do if a real estate contract includes contingencies?

When a real estate contract includes contingencies, it means that certain conditions must be met for the contract to be valid and for the transaction to proceed toward closing. These contingencies outline specific requirements that the buyer or seller must fulfill to ensure that the deal can be finalized. Common examples of contingencies include securing financing, passing inspections, or obtaining necessary approvals.

The inclusion of contingencies creates a framework within which the buyer must operate. If a buyer is required to meet specific conditions, it may involve providing proof of mortgage approval, satisfactory home inspection results, or resolving any other conditions laid out in the contract. Only once these requirements are met can the transaction move forward to the closing stage.

The nature of these contingencies ensures both buyers and sellers are protected in the transaction, allowing buyers to back out of the deal without penalty if the specified conditions are not satisfied, while also assuring sellers that the buyer is genuine and capable of fulfilling the terms of the agreement.