Here is some great information on Contingencies......
Anyone who is thinking of purchasing a home or has ever owned a home has heard about contingencies. What are contingencies?
Contingencies are clauses in a real estate contract that stipulate various conditions that must be met by the buyer and the seller for a sale to go through. For example, many buyers write into the contract that being able to close on the sale of their own home is a condition of the offer to purchase the new home. That way, if the sale of their own residence falls through, they will not be obligated to go through with the purchase of the new property.
For buyers, contingencies are important because they can cover them should they be unable to fill the obligations of the contract, or should they decide that they no longer want to purchase the property.
Some buyers -- especially in heated markets where several people may be interested in buying a particular home -- may be tempted to do without contingencies, in order to make themselves look more appealing to the seller and to win in a bid for the home.
But that's not a smart move -- it's essentially like working without a safety net. A contingency is a buyer's backup plan -- if a buyer is working with a good real estate attorney or a smart real estate professional, he will have several contingencies written into the contract to back him up.
After all, when you sign a contract to purchase a home, several thousand dollars -- and possibly, several hundred thousand dollars -- are at stake. Those aren't small potatoes.
These are some of the more prevalent buyer contingencies that are written into contracts, and some you may want to consider writing into your own contract should you think about purchasing a home: