Contingency
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Definition
A contingency is a written condition in a purchase contract. If it is not met, the buyer may be able to cancel or renegotiate under that contract. Common home-purchase examples include financing and inspection. It is not earnest money and not the purchase price.
In plain English
A purchase offer is often not a bare promise to buy at a price. It may say the deal depends on a loan approval, an inspection, or another stated event. Those conditions are contingencies. Earnest money is the deposit that shows the buyer is serious. A contingency is a contract condition, not the deposit.
Technical definition
CFPB's official Find the right home page is PRIMARY for financing and inspection contingencies in a purchase offer. CFPB key terms are supporting consumer context. Contract forms and remedies vary by state.
Why it matters
Buyers treat every contract problem as a contingency and every contingency as a refund rule. The written agreement controls.
Related terms
Sources reviewed
Find the right home
Source reviewedSeptember 7, 2026
Mortgage key terms
Source reviewedSeptember 4, 2026
Important note
Common home-purchase contingencies include financing and inspection. Contract forms, deadlines, and remedies vary by state and by the written agreement. This is not legal advice.
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