Buyers often make an offer to buy a home before having sold their house. They need to sell their current home to have the downpayment to make the purchase. The offer to purchase is "conditional" on the sale of their home. That is a "contingency." Contingencies in real estate contracts narrow a buyer's or seller's obligation to perform the contract and close the deal.
In a sellers’ market sellers would not accept the contingency above. A potential buyer with a home to sell should already have their home listed AND have an accepted offer from a "ready, willing and able" buyer. In the current buyer’s market, sellers are likely to agree to such a contingency.
Professional Contract Review
Contingencies are a matter of negotiation. They are agreed upon by the parties. Perhaps the most important contingency is the attorney review period. This is a timeframe after the signing of the contract where the attorneys for each party review the contract and make suggestions to their clients for changes to protect their interests.
