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Contingencies in Real Estate

What are contingencies in real estate and why are they so important?

A contingency can best be defined as a clause in a formal real estate contract that states that certain conditions must be met by either the buyer or the seller in order to continue to the next step in the contract. Only when ALL contingencies are fulfilled can the sale of the home be finalized. If the contingencies are not met, then both parties must agree to renegotiate the terms or terminate the contract.

Over the course of the next few days we will highlight the most common types of contingencies found in Real Estate.

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