Contingency Clause

Intermediate 🏠 Real Estate

Definition

Specific conditions that must be met for a contract to proceed, the legal equivalent of 'but first...'

Example Usage

The contingency clause required a satisfactory inspection before final commitment.

Origin

From contract law terminology

Fun Fact

Inspection contingencies are most common, but financing and appraisal contingencies are equally important.

Source: Real Estate Contract Law

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