A contingent listing means the seller has accepted an offer, but the sale depends on certain conditions being met before it can close. Those conditions, called contingencies, protect the buyer or seller and let either side back out if they aren’t satisfied. In other words, the home is spoken for, but the deal is not final. If a contingency falls through, the home can return to the market.
What is the difference between contingent and pending?
Contingent and pending both mean a home is under contract, but they mark different stages. Contingent is earlier, with conditions still open. Pending is later, once those conditions are cleared.
- Contingent: an offer is accepted, but one or more contingencies still need to be satisfied. There is a real chance the deal changes or ends.
- Pending: the contingencies are met, and the sale is moving toward closing. It is much less likely to fall through.
What are the most common types of contingencies?
Most contingencies fall into a few categories, each tied to something the buyer needs to confirm before committing. These are the ones you will see most often.
- Inspection contingency: the buyer can have the home inspected and renegotiate or walk away based on what turns up.
- Financing contingency: the sale depends on the buyer securing a mortgage.
- Appraisal contingency: the home must appraise at or near the agreed price for the lender to fund the loan.
- Home sale contingency: the buyer needs to sell their current home first.
- Title contingency: the title must come back clear of unexpected liens or claims.
Can you still make an offer on a contingent home?
Yes, in many cases you can still make an offer on a contingent listing, and it may be accepted as a backup. If the current deal falls apart, a backup offer can move into first position. Whether it is worth doing depends on how likely the first deal is to close and how much you want the home. A backup offer keeps you in line without stopping your search.
What happens if a contingency isn’t met?
If a contingency isn’t satisfied, the side it protects can usually renegotiate or cancel the contract, often without penalty. What happens to the earnest money depends on the contract terms and which contingency applied. For example, if an inspection reveals a major problem, the buyer might ask for repairs or a price reduction, or exercise the inspection contingency to walk away. When a deal ends this way, the listing typically goes back on the market.
Is contingent the same as pending?
No. Contingent means conditions are still open and the deal could change. Pending means those conditions are met and the sale is close to final. Pending is the later, more certain stage.
Can a contingent offer fall through?
Yes. That is the whole point of a contingency. If an inspection, appraisal, financing, or home-sale condition isn’t met, the deal can be renegotiated or canceled, and the home may return to the market.
What is a contingency in an offer?
A contingency is a condition written into the purchase contract that must be satisfied for the sale to proceed. Common ones cover inspection, financing, appraisal, the sale of the buyer’s current home, and clear title.
Should you make an offer on a contingent listing?
You can, often as a backup offer. It makes the most sense when you really want the home and there is a reasonable chance the first deal falls through. Talk it through with your agent before deciding.
That is what contingent really means when you see it on a listing. If you are shopping for a home and want a brokerage that keeps track of these deadlines with you and Homie is a licensed Utah real estate brokerage. None of this is legal advice, so for anything binding, bring a Utah real estate attorney into the conversation early.
— The Homie Team
Sources
- National Association of Realtors: contract contingencies and buyer/seller terms: https://www.nar.realtor/
- Realtor.com: contingent vs. pending listing status: https://www.realtor.com/
- Utah Division of Real Estate: the Real Estate Purchase Contract (REPC) and contingencies: https://realestate.utah.gov/