contracts

sale contingency

A sale contingency is a clause in a purchase contract making the buyer's obligation depend on selling their current home, usually by a certain date. If the buyer's home does not sell in time, the buyer can typically cancel and recover earnest money. Sellers often protect themselves with a kick-out clause, allowing them to keep marketing and give the buyer a deadline to remove the contingency if a better offer arrives.

Exam tip
Know that a sale contingency weakens an offer from the seller's view, and that a kick-out (escape) clause is the seller's common counter-protection.
Example
A buyer offers $350,000 contingent on selling his condo within 60 days. When another buyer offers on day 30, the seller gives him 72 hours to waive the contingency or be released.

Related terms & state variants

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Last verified: 2026-10-23