In real estate, we talk about in contracts there being contingencies.
These are addendums or extra paperwork that we add to a sales contract that give the buyer the options to get out of the contract.
The most common one would be a finance contingency. For example: as a buyer, you go and get a loan but that loan doesn’t get approved, you can then get out of the sales contract since your loan wasn’t approved.
Another common contingency is a home inspection contingency. In this example, you have a home inspector come and look at the house you are buying and they tell you about some of the deferred maintenance or structural defects, then you want to get out of the contract based on those findings.
Those are the two most common contingencies that allow you to get out of a contract.
Matt Cheney
Washington Fine Properties
M: 202-465-0707