Can a contingency be signed electronically?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the parties demonstrate intent, consent, attribution, and retention. Some narrow exceptions (wills, certain court filings) remain outside e-signature coverage.

Does a contingency require notarization?

Usually no. Contingencies are contractual clauses and typically do not require notarization unless state law, lender, or specific title requirements demand notarized acknowledgment for certain attached documents.

What happens if a deadline is missed?

A missed deadline often triggers the remedies stated in the contract: extension, termination, or deemed waiver. Absent clear language, missed deadlines can lead to disputes over deposit forfeiture or breach claims.

How do I properly remove a contingency?

Removal should follow the contract's method—typically a written notice delivered to specified parties with supporting documentation. Ambiguous removals are the most common cause of post-closing disputes.

Can contingencies be amended after execution?

Yes, but amendments require mutual agreement and signatures from all parties. Amendments should restate any new deadlines and confirm the effect on existing obligations to avoid confusion.

How long should I keep contingency documents?

Retain signed contingencies and evidence for at least three years from filing for tax purposes, and six years for healthcare-related matters; many real estate records are kept seven years or longer when liability exists.

Electronic Signature
Templates
Real estate
Real Estate Contingency of Sale

Real Estate Contingency of Sale

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

REAL ESTATE CONTINGENCY OF SALE

This Real Estate Contingency of Sale (the "Contingency") is made part of the Purchase Agreement dated between Buyer: and Seller: . The purchase price stated in the Purchase Agreement is $ .

Parties and Property Identification

Buyer - Full Legal Name and Contact Buyer - Address for Notices Buyer - Email / Phone Seller - Full Legal Name and Contact Seller - Address for Notices Seller - Email / Phone Subject Property (being purchased under Purchase Agreement) Parcel / APN Number Legal Description

Contingency - Sale of Buyer's Property

This contingency conditions Buyer's obligation to close the Purchase Agreement on the sale and closing of Buyer's existing property located at (the "Contingency Property"). Buyer must obtain an executed contract for the Contingency Property by and close escrow on the Contingency Property on or before .

Listing and Marketing of Contingency Property Listing Agent / Broker Listing Date

Buyer shall use commercially reasonable efforts to procure an accepted offer and to remove this contingency as set forth herein. Buyer shall provide Seller with written notice of removal or termination of the contingency in accordance with the Notice provisions below.

Removal, Extension and Termination

Time to Remove Contingency (days)

If Buyer obtains an executed contract for the Contingency Property within the time specified, Buyer shall deliver to Seller written confirmation of removal no later than . If Buyer fails to timely remove the contingency, Seller may elect either (a) to terminate the Purchase Agreement by written notice to Buyer, or (b) to treat Buyer's failure as a breach and pursue remedies as provided in the Purchase Agreement and under applicable law.

Extension Requested (if applicable) - Additional Days

Any extension to the contingency deadlines must be in writing and signed by both Buyer and Seller. Unless extended in writing, deadlines are strict and time is of the essence.

Earnest Money and Disposition

Earnest Money Amount

If this Contingency is timely removed, earnest money shall be applied to the Purchase Agreement as provided therein. If this Contingency is not timely removed and Seller terminates under this Contingency, earnest money shall be

Financing and Other Contingencies

This Contingency is Financing Contingent (Yes) Financing Contingent (No). If financing is required, Buyer shall use diligent efforts to obtain loan approval and shall provide Seller written notice if financing cannot be obtained by .

Seller and Property Disclosures

Seller represents the following disclosures concerning the Subject Property as of the date below:

Lead-Based Paint: Yes No

Known Mold or Water Damage: Yes No

Prior Structural Damage or Material Repairs: Yes No

If yes, describe

Default, Remedies and Mutual Releases

If Buyer fails to remove this Contingency within the time provided and Seller properly elects to terminate the Purchase Agreement, the parties' rights and remedies shall be governed by the Purchase Agreement. If the Purchase Agreement does not provide an exclusive remedy, Seller may retain or pursue all remedies at law or in equity, including forfeiture of earnest money to the extent permitted by applicable law. If Seller breaches this Contingency, Buyer may elect to terminate the Purchase Agreement and obtain return of earnest money or seek specific performance where appropriate.

Notices

Any notice required or permitted under this Contingency must be in writing and delivered to the addresses below by personal delivery, nationally recognized courier, or certified mail (return receipt requested). Notices are effective upon receipt.

Buyer - Notice Address Seller - Notice Address

Miscellaneous

This Contingency constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any prior oral or written agreements. Any amendment to this Contingency must be in writing and signed by both parties. If any provision of this Contingency is held invalid, the remaining provisions shall remain in full force and effect.

Governing Law: The laws of the state of shall govern the interpretation and enforcement of this Contingency.

Execution in Counterparts: This Contingency may be executed in counterparts and delivered by electronic transmission, each of which shall be deemed an original and all of which together shall constitute one instrument.

Buyer Printed Name:

By:

Date:

Seller Printed Name:

By:

Date:

What the Real Estate Contingency of Sale Is and when it applies

A Real Estate Contingency of Sale is a contractual clause or separate addendum that conditions closing a property transaction on one or more specified events or approvals, such as satisfactory inspection, appraisal, title review, financing, or sale of the buyer's current home. Contingencies allocate risk between buyer and seller, set deadlines for actions or removals, and describe remedies if the condition is not met. Well-drafted contingencies state the triggering event, the party responsible for satisfying it, timeframes for performance, and the effect of failure to remove or satisfy the contingency.

Why a clear contingency protects both parties

A precise Real Estate Contingency of Sale reduces transaction risk, clarifies who pays for inspections or repairs, and sets enforceable deadlines. It prevents misunderstandings that can lead to deposit forfeiture or litigation while preserving contractual exit rights when essential conditions are unmet.

Who completes and relies on a Contingency of Sale

Buyers, sellers, listing and buyer agents, lenders, and closing attorneys commonly draft, review, or rely on contingencies to manage conditional obligations and timing.

Each stakeholder should confirm contingency language aligns with the purchase contract, lender requirements, and applicable state rules before signing.

Core elements to include in a professional contingency

A useful Contingency of Sale spells out objective triggers, responsible parties, removal procedures, deadlines, documentation required, and the consequence of unmet conditions.

Trigger Event

Identify the specific condition (inspection, financing, sale of buyer's property) that must be satisfied for closing to proceed.

Responsible Party

Name whether buyer, seller, or third party (e.g., lender) is responsible for taking actions to meet the contingency.

Documentation Required

Specify exactly what evidence satisfies the contingency (inspection report, lender commitment, termite clearance, signed release).

Deadlines

Set clear calendar deadlines for inspection, cure periods, and final removal of contingency to avoid ambiguity.

Removal Mechanism

Describe how a party removes the contingency (written notice, delivery of documentation) and to whom it must be sent.

Remedies

State the permitted actions if the contingency fails: termination, renegotiation, extension, or forfeiture of earnest money.

Step-by-step: completing a Contingency of Sale properly

Follow this sequence to draft, present, and finalize contingency terms so they are actionable and compatible with lender and title requirements.

01

Draft Language: Describe the condition, responsible party, and removal procedure concisely.
02

Set Deadlines: Choose explicit calendar dates or a fixed day count tied to contract execution.
03

Attach Evidence: List required reports or documents that will satisfy the contingency.
04

Deliver Notice: Specify delivery methods for removal or failure notices to ensure receipt.

Configuring an online workflow for contingency handling

Map fields, notifications, and role-based access when building a digital routing workflow to collect evidence and timely remove contingencies.

Field	Configuration
Contingency Type Field	Dropdown with inspection, financing, appraisal
Deadline Field	Date picker validated as MM/DD/YYYY
Evidence Attachment	Required PDF upload with file type and size limits
Notification Rule	Auto-reminder n days before deadline

Where to send and how the contingency is processed

Contingency documents and removal notices should be routed to the listing agent, buyer's agent, lender, and title company using the method specified in the contract.

To Listing Agent: Deliver notice and evidence per contract's specified method.
To Buyer's Agent: Provide inspection reports and lender commitments for review.
To Lender: Send appraisal and loan conditions required for funding.
To Title Company: Share clearance documents and any curative steps completed.

Digital delivery and signing technologies

Use secure e-signature platforms that produce an audit trail, accept attachments, and support role-based routing for reliable evidence and recordkeeping.

File formats: PDF, DOCX supported for evidence and signed addenda.
Authentication: Email or SMS codes recommended; stronger methods for high-risk transactions.
Integrations: Connect with MLS, title, and lender portals where possible.

Ensure the chosen platform complies with ESIGN and UETA and retains a tamper-evident audit trail; if handling health data, obtain a BAA under HIPAA.

Typical milestone sequence for contingency-driven closings

A standard timetable helps all parties track obligations from contract ratification through contingency removal and closing.

01

Contract Ratified

Countersigned contract triggers contingency clock and initial obligations.

02

Inspection Period

Buyer arranges inspections and reports within stated days.

03

Financing/Appraisal

Lender issues commitment or appraisal occurs within deadline.

04

Contingency Removal

Buyer delivers written removal or exercises termination rights.

Common deadlines to set in the contingency

Specify clear calendar dates for each subtask; avoid vague language like 'reasonable time' to prevent disputes.

Inspection Deadline:

Typically 7–14 calendar days from ratification; define exact date.

Repair Cure Period:

Specify number of days seller has to complete agreed repairs.

Loan Approval Deadline:

Set a firm date for lender commitment consistent with underwriting timelines.

Appraisal Contingency Date:

Set date for receiving appraisal and raising valuation objections.

Contingency Removal Date:

Final date when buyer must remove contingency in writing.

Common mistakes to avoid when preparing contingencies

Using vague terms like 'reasonable time' or failing to specify calendar versus business days, which creates interpretive disputes and closing delays.
Not naming the delivery method or recipient for removal notices, producing uncertainty about whether a party properly removed the contingency.
Failing to match contingency language to the lender's underwriting conditions, risking loan denial and contract default.
Overlooking county recording or title company requirements that may affect how evidence is presented or accepted at closing.

Potential consequences of incorrect or missing contingency terms

Earnest Money Risk: Buyer may forfeit deposit if contingency language is inadequate.

Contract Breach: Ambiguous deadlines can lead to breach claims and damages.

Loan Denial: Incompatible contingencies can cause lender to withdraw financing.

Title Issues: Insufficient title contingency wording may leave defects unresolved.

Delayed Closing: Unclear cure periods or notice procedures can postpone closing.

Litigation Exposure: Poorly drafted contingencies increase litigation and legal costs.

Essential information to include on the form

Buyer Name: Legal name required

Seller Name: Legal name required

Property Address: Full street address

Contingency Type: Inspection/financing/etc.

Deadlines: MM/DD/YYYY format

Contact Info: Email and phone

eSignature vendor comparison for handling contingency workflows

Comparison of common vendor features and starting prices for document execution and workflow integration. signNow appears first per vendor ordering rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Real-world examples of contingency use and outcomes

These brief case notes illustrate common ways contingencies resolved practical issues during closings.

Martin Properties — Tim Martin, Founder

Tim used an inspection contingency to require specific termite remediation

The contingency required licensed reports and seller cure within ten days
The clear removal mechanism and documented repair allowed an on-time close with funds distributed as agreed.

Optica Ventures — Brian Fitzgibbons, COO

Optica used a sale-of-home contingency to make closing contingent on buyer's successful sale

The clause defined staging and notice requirements
The transparent timeline and proof-of-offer process reduced disputes and preserved the earnest money when the buyer exercised termination rights.

Frequently asked questions about Real Estate Contingency of Sale

Answers to common questions about enforceability, e-signing, deadlines, remedies, and document retention for contingency provisions.

Need help? Contact support

Can a contingency be signed electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the parties demonstrate intent, consent, attribution, and retention. Some narrow exceptions (wills, certain court filings) remain outside e-signature coverage.
Does a contingency require notarization?
Usually no. Contingencies are contractual clauses and typically do not require notarization unless state law, lender, or specific title requirements demand notarized acknowledgment for certain attached documents.
What happens if a deadline is missed?
A missed deadline often triggers the remedies stated in the contract: extension, termination, or deemed waiver. Absent clear language, missed deadlines can lead to disputes over deposit forfeiture or breach claims.
How do I properly remove a contingency?
Removal should follow the contract's method—typically a written notice delivered to specified parties with supporting documentation. Ambiguous removals are the most common cause of post-closing disputes.
Can contingencies be amended after execution?
Yes, but amendments require mutual agreement and signatures from all parties. Amendments should restate any new deadlines and confirm the effect on existing obligations to avoid confusion.
How long should I keep contingency documents?
Retain signed contingencies and evidence for at least three years from filing for tax purposes, and six years for healthcare-related matters; many real estate records are kept seven years or longer when liability exists.

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