Conditions, contained in the Purchase Agreement, which outline the obligations the seller and buyer must fulfill before sale of the property is completed.
Contingencies can concern the results of your effort to obtain financing, an inspector’s opinion of the condition of the property, appraisal, etc.
For instance, a sales agreement may be contingent upon the buyer obtaining financing, property inspections and appraisal. A seller may have a contingency of finding a replacement property.
Both the Buyer and Seller can have contingencies in a purchase agreement and a contingency can be a way to cancel the agreement if the contingency can not be met.