{"id":30552,"date":"2022-03-31T11:50:54","date_gmt":"2022-03-31T18:50:54","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=30552"},"modified":"2026-04-08T11:34:01","modified_gmt":"2026-04-08T18:34:01","slug":"buyer-seller-contingency-clause","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-seller-contingency-clause\/","title":{"rendered":"Is a Home Sale Contingency Clause Always Necessary? Here Are Your Options"},"content":{"rendered":"

Home listings have been in short supply<\/a> for several years now across the U.S., leading to bidding wars in many of the major markets. To succeed in getting a seller to consider your offer, you need to work in advance with your real estate agent to assess the best bargaining tools to entice the seller to move your<\/i> offer to the top of the list.<\/p>\n

For instance, getting preapproved for a mortgage<\/a> is imperative in the 2022 tight market. Cash offers or flexibility in choosing a closing date can also be attractive enticements to a seller.<\/p>\n

But one of the most influential bargaining tools is eliminating contingency clauses, especially the seller contingency clause, also known as the home sale contingency.<\/p>\n

A home sale contingency<\/a> clause is an agreement written into the contract that says if you are unable to sell your current home by a certain date \u2014 making it financially possible for you to purchase the new home \u2014 then you can walk away from the contract, and your earnest money will be returned.<\/p>\n

Eliminating this important contingency<\/a> can be tricky, but it may be the only way to get your offer accepted in a competitive market.<\/p>\n

We spoke with Karla Ballenger, partner and real estate consultant with the Raines Group<\/a> in Columbus, Ohio<\/a>, to understand the pros and cons of home sale contingency clauses, and to review alternative workarounds that may entice the seller to accept your offer while keeping a home sale contingency in place.<\/p>\n

\"a<\/a>
Source: (Masjid MABA \/ Unsplash)<\/figcaption><\/figure>\n
<\/div>\n

What is a contingency clause?<\/h2>\n

Let\u2019s begin by looking at the \u201cwhat\u201d and \u201cwhy\u201d of contingency clauses.<\/p>\n

A contingency clause<\/a> in a real estate contract states a specific condition that must be met in order for the contract to be finalized. If the condition is not met, the clause allows the buyer or seller using the contingency to withdraw from the contract without any penalty.<\/p>\n

Contingency clauses can protect both the buyer and seller<\/a> from being tied to the contract if some glitch arises for either party.<\/p>\n

There are several contingency clauses typically found in a real estate contract:<\/p>\n