If you’re house-hunting around L.A., you’ve probably noticed listings marked contingent and thought… so is it available or not?
Here’s what’s really going on: a contingent offer just means a buyer and seller have agreed on a deal, but the sale isn’t final yet. The buyer still has a few boxes to check before they’re fully locked in — things like inspections, appraisal, loan approval, or sometimes selling their current place.
If all those things go smoothly, the sale closes. If something goes sideways, the buyer can usually back out and get their deposit back.
Every contingency has a set deadline — that’s called the contingency period. During that time, buyers can negotiate repairs, request credits, or even walk if a big issue pops up. It’s basically the safety net phase of the deal before everyone commits for real.
The Most Common Contingencies (and Why They’re Not a Bad Thing)
Let’s break down the usual suspects you’ll see in offers and what each one actually does:
Home Inspection
This is the “let’s make sure the house isn’t hiding something expensive” step. Buyers bring in a licensed inspector to check everything — roof, plumbing, electrical, foundation, etc. If something major comes up, the buyer can ask for repairs, a credit, or a price drop. If it’s a dealbreaker, they can walk away and keep their earnest money.
Appraisal
If a loan’s involved, the lender will send an appraiser to confirm the home’s value matches the agreed price. If it comes in low, the buyer can renegotiate or make up the difference in cash. It keeps everyone honest about what the property is really worth.
Financing (a.k.a. Mortgage Contingency)
This gives buyers time — typically three to four weeks — to finalize their loan. If their financing falls through for any reason, they can cancel without losing their deposit. It’s basically a protection against being forced to buy a house they can’t get a loan for.
Title
This one’s about ownership. The title company runs a search to make sure there aren’t any old liens, unpaid taxes, or random claims on the property. If they find something the seller can’t fix, the buyer can back out safely.
Home Sale
If the buyer needs to sell their current home first, this clause says, “I’ll buy yours once mine closes.” These can make sellers nervous because of timing risk, so sometimes they’ll pair it with a kick-out clause (more on that below).
Homeowners Insurance
In some areas — think hillside homes, wildfire zones, or coastal properties — getting insurance isn’t always a sure thing. This contingency gives buyers a chance to confirm they can actually get coverage at a reasonable cost.
Escape Clause
This one helps the seller. It means they can keep showing the house while waiting for the first buyer to sell theirs. If a stronger offer comes in, they can give that first buyer a short window (usually a couple days) to either remove their contingency or let the seller move on.
HOA Review
If the home’s in an HOA, buyers have a few days to review the rules, financials, and fees. If the documents show something they’re not comfortable with — like high assessments or strict rental limits — they can walk away without penalty.
What Happens If a Contingency Falls Through
If a condition isn’t met by the deadline, the buyer can either negotiate or terminate the deal. Maybe the seller agrees to repair something, maybe they credit funds toward closing — or sometimes, both sides just part ways.
Bottom line: contingencies are not a bad thing. They’re simply the built-in guardrails that keep buyers (and honestly, sellers too) protected until everyone’s sure they’re ready to move forward.
