The contingency period during a home sale or purchase refers to a time period that starts the date an offer is accepted by the seller and ends on the date named in the accepted offer, which is referred to as a contingency removal date.
Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your real estate agent usually will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.
Both you and the seller will receive a report on the home inspector’s findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you should request a walk-through of the house to confirm that any agreed-upon repairs have been made.
Lenders will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company and is not directly associated with the lender. The appraisal will let all the parties involved know that you are paying a fair price for the home.
After the home inspection, repairs (if applicable) and appraisal, your lender will arrange for a title company to handle all of the paperwork involved in buying a house and make sure that the seller is the rightful owner of the house you are buying.