Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
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Contingency
A condition that must be met before a contract is legally binding. Some examples in home buying:
1) The buyer specifies the house and property must pass inspection from a qualified home inspector.
2) The buyer's ability to get the mortgage financing that is specified in the contract.
3) The seller or buyer sells their current home before they purchase the new home.
The contract is not binding until all contingencies are met. If a contingency cannot be met, the party may withdraw from the contract.
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