Contingency
A condition in a contract that must be satisfied for the deal to move forward, such as financing, inspection, or appraisal.
A contingency is a condition written into a contract that must be met before the parties are obligated to close. Common examples are a financing contingency, an inspection contingency, and an appraisal contingency.
If a contingency is not satisfied within its deadline, the protected party can usually cancel the contract and, in many cases, recover the earnest money.
On the exam
Exam trap
Tested in
Contracts (12% of the exam)
From definition to recall
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This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.