Are electronic signatures valid on contingencies?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA laws when intent, consent, attribution, and retention are met; exceptions for wills and certain court filings still apply.

Do contingencies require notarization?

Generally no for purchase contracts, but deeds and conveyances typically require notarization and may need witnesses in some states; check local recording requirements before closing.

How do parties amend a contingency?

Amendments should be in writing, signed by all parties, and dated; include an explicit effective date and, if using e-signatures, retain the audit trail showing intent and attribution.

What if the buyer cannot sell by the deadline?

If the contingency is not removed by the deadline the seller may terminate, keep remedies in the agreement, or accept a negotiated extension executed in writing by both parties.

Can proof of sale include pending closings?

Acceptable proof should be defined in the agreement; many sellers accept an executed purchase contract plus evidence of financing and scheduled closing, but require final HUD-1/Closing Disclosure for absolute verification.

How do I correct a signed but flawed agreement?

Execute a signed amendment or mutual rescission and refile if necessary; retain both versions and ensure the amendment references the original by date to preserve the audit trail and evidentiary record.

Electronic Signature
Templates
Real estate
Sale Contingency Agreement

Sale Contingency Agreement

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

SALE CONTINGENCY AGREEMENT

Parties

Buyer Name Buyer Contact (address, phone, email) Seller Name Seller Contact (address, phone, email)

Property Subject to Primary Agreement

Property Address Parcel / APN Legal Description

Reference to Purchase Agreement

This Sale Contingency Agreement (the "Agreement") amends and supplements the Purchase and Sale Agreement dated between Seller and Buyer concerning the Property described above. The terms set forth in this Agreement take precedence over conflicting provisions in the referenced Purchase and Sale Agreement.

Sale Contingency Terms

Buyer’s obligation to close the purchase of the Property is expressly contingent upon Buyer obtaining a fully executed contract for the sale of Buyer’s current property located at (the "Buyer's Property") on terms acceptable to Buyer in Buyer’s sole discretion within calendar days following the Effective Date of the Purchase Agreement.

Buyer's Property Parcel / APN Listing Broker / Agent for Buyer's Property Listing Price for Buyer's Property

Buyer shall provide Seller with written evidence of an executed sale contract for the Buyer's Property within business days after execution of such sale contract. Evidence shall include a copy of the fully executed purchase contract, proof of any buyer deposits, and any contingency removals. Seller shall have business days to acknowledge receipt in writing.

Waiver, Release, and Marketing

Buyer may, at Buyer’s sole discretion, waive the contingency in writing at any time by delivering written notice to Seller. If Buyer fails to obtain an acceptable contract for the Buyer's Property within the contingency period, Seller may, upon delivering written notice to Buyer, either (a) terminate the Purchase Agreement and receive return of the earnest money in accordance with the Purchase Agreement, or (b) allow Buyer a one-time extension of days to obtain an accepted contract upon payment of an extension fee of to Seller.

During the contingency period, Seller may continue to market the Property and accept backup offers. If Seller obtains an accepted backup offer and delivers written notice to Buyer specifying the terms of the backup offer and providing Buyer with hours to remove the contingency or match the backup offer, Buyer shall have the stated period to either (i) waive the contingency in writing, or (ii) provide Seller with notice of termination.

Earnest Money and Deposits

Earnest Money Amount

If Buyer timely fails to remove the contingency and the Purchase Agreement is terminated pursuant to this Agreement, earnest money shall be handled in accordance with the Purchase Agreement; provided, however, that in the event of Buyer’s uncured breach of the Purchase Agreement outside the contingency, Seller’s remedies shall include retention of earnest money as liquidated damages or pursuit of specific performance as allowed by law.

Closing, Possession and Cooperation

Target Closing Date for Primary Transaction

If Buyer's sale closes after the Primary Transaction's scheduled closing date, the parties agree to good faith cooperation to adjust closing and possession dates. Buyer shall provide Seller and Seller's escrow holder with timely notice of the status of the Buyer's sale and shall deliver copies of all executed sale contracts and escrow instructions relating to the Buyer's Property upon request.

Inspections, Disclosures, and Representations

All inspections, disclosures, and contract contingencies stated in the Purchase Agreement remain in full force. Seller represents that Seller has disclosed known material defects in accordance with applicable law. Buyer acknowledges that Seller's ongoing marketing of the Property and acceptance of backup offers do not alter Seller's disclosure obligations.

Lead-Based Paint Disclosure — Lead Present? Yes No

Known Mold or Water Intrusion? Yes No

Prior Material Damage or Repairs? Yes No

Default and Remedies

If Buyer fails to timely remove the contingency or otherwise breaches the Purchase Agreement, Seller may pursue all remedies available under the Purchase Agreement and at law or equity, including retention of earnest money as liquidated damages, specific performance, or termination as appropriate. If Seller breaches hereunder, Buyer may terminate the Purchase Agreement and elect to receive return of earnest money or pursue specific performance.

Notices and Delivery

All notices required or permitted under this Agreement must be in writing and delivered to the addresses provided above via personal delivery, nationally recognized overnight courier, or certified mail, return receipt requested. Notice is effective upon receipt or refusal. For purposes of timing the contingency, electronic delivery of executed sale contracts for the Buyer's Property shall be treated as written evidence of an executed contract so long as originals are delivered promptly upon request.

Additional Provisions

Assignment Time Is of the Essence Acknowledged

This Agreement constitutes the entire agreement between the parties with respect to the sale contingency described herein and supersedes prior oral or written agreements relating to the contingency. This Agreement may be amended only by a written instrument signed by both parties. This Agreement shall be governed by the laws of the state in which the Property is located.

Acceptance

By signing below, the parties acknowledge that they have read, understand, and agree to be bound by the terms of this Sale Contingency Agreement and that the individual signing for any party has authority to bind that party.

Buyer Printed Name:

By:

Date:

Seller Printed Name:

By:

Date:

What a Sale Contingency Agreement Is and when it applies

A Sale Contingency Agreement is a clause or standalone addendum used in real estate transactions that conditions a purchase on the buyer first selling an identified property. It specifies the property to be sold, time limits for marketing and closing, and how deposits, inspections, and contract termination operate if the sale does not occur. The contingency may include financing and appraisal triggers tied to the buyer’s sale; when properly drafted it preserves the buyer’s right to terminate while setting remedial steps for the seller, such as negotiating extensions or retaining earnest money.

Why a Sale Contingency Agreement matters to buyers and sellers

A Sale Contingency Agreement protects buyers who must sell an existing home before closing and gives sellers clarity about timelines and remedies. It reduces the risk of failed closings by defining deadlines, removal mechanics, and acceptable proof of a sale.

Who commonly prepares and signs these agreements

Real estate practitioners, buyers, sellers, and their attorneys or brokers commonly use sale contingency language to manage risk in pending purchases.

Buyers and brokers: Buyers who need proceeds from a sale to fund a purchase; brokers draft deadlines and marketing expectations.
Sellers and listing agents: Sellers who want firm deadlines, evidence of a home sale, and defined remedies if the buyer fails to perform.
Attorneys and title companies: Lawyers and title agents review enforceability, confirm deed-related requirements, and ensure clear vesting and closing instructions.

Step-by-step: Complete and execute the contingency section

Follow these steps in order to reduce execution errors and preserve enforceability during buyer-seller negotiation and closing.

01

Prepare contract: Attach the contingency as an addendum or insert clause in the purchase agreement.
02

Define property: Clearly identify both the subject property and the contingent property being sold.
03

Set deadlines: Specify exact MM/DD/YYYY dates for inspection, removal, and closing milestones.
04

Sign parties: Have all contracting parties sign and date to create mutual obligations.

How the Sale Contingency Agreement flows through a transaction

The contingency creates conditional rights and deadlines; the practical workflow spans proof submission, verification, contingency removal, and possible termination or extension.

Proof submission: Buyer submits sale contract or closing statement for the contingent property.
Verification: Seller or agent verifies documents, title encumbrances, and closing date.
Contingency removal: Buyer delivers written removal by the agreed deadline to proceed to closing.
Extension or termination: Parties may agree to a written extension or the seller may accept termination remedies.

Digital workflow settings when using e-signature and document routing

Configure your online workflow to collect proof, route for verification, and record each removal or termination event.

Field	Configuration
Upload Contingency Addendum	Attach PDF or DOCX to primary transaction record.
Proof Upload Field	Allow PDF upload and require filename convention.
Signer Order	Set buyer first, then seller for verification acknowledgment.
Reminder Schedule	Auto-remind parties 7 and 2 days before deadlines.

Technical considerations for e-signing and storage

Use an eSignature platform that supports PDF, DOCX uploads, audit trails, and secure storage to preserve evidentiary records.

File formats: PDF and DOCX accepted
Audit trail: Capture IP, timestamp, and actions
Integrations: Works with CRM and cloud storage

Essential elements to include in a professional Sale Contingency Agreement

A complete agreement anticipates proof, timing, seller remedies, and mechanics for removal or extension to reduce ambiguity and litigation risk.

Parties

Identify buyer(s) and seller(s) by full legal name and contact details, including marital status if title vesting or community property rules may apply, to ensure enforceability and accurate title transfer.

Subject property

Give the full street address and legal description for the property being purchased; avoid shorthand addresses and include unit numbers or parcel IDs when available to prevent later disputes over identity.

Contingent property

Describe the buyer’s property that must sell, including address, listing status, and acceptable proof of a ratified sale or closing statement to make the contingency objective and verifiable.

Deadlines

Specify exact removal, inspection, financing, appraisal, and closing dates in MM/DD/YYYY format and state whether deadlines are calendar or business days to eliminate counting disputes.

Proof requirements

Define acceptable documents (executed purchase contract, HUD-1/Closing Disclosure, proof of clear title) and the delivery method and timing for seller verification to trigger contingency removal.

Remedies

State consequences for failure to remove the contingency, including forfeiture of earnest money, contract termination rights, or allowance to close subject to extension agreements to clarify remedies.

Key information fields required on the agreement

Buyer Name: Full legal name

Seller Name: Full legal name

Property Address: Street, city, state

Contingent Address: Full address

Deadlines: MM/DD/YYYY format

Proof Type: Contract/Closing Disclosure

Common drafting and execution mistakes to avoid

Vague deadlines: Using phrases like 'within a reasonable time' instead of exact dates creates enforceability disputes and litigation risk for both parties.
Incomplete property descriptions: Omitting unit numbers or parcel IDs can lead to title confusion and delays in closing or recording.
Undefined proof standards: Not specifying acceptable documents or delivery methods allows the receiving party to reject legitimate evidence without objective basis.
Missing signature dates: Unsigned or undated signature blocks may permit arguments that the contingency was never properly accepted or removed.

Potential legal and financial consequences of errors

Deposit Forfeiture: Buyer may lose earnest money

Contract Termination: Seller can terminate contract

Breach Liability: Damages may be sought

Closing Delays: Title or funding issues delay close

Re-recording Costs: Additional recording fees

Disputes: Potential arbitration or court

Typical deadlines and what they control

Sale contingency agreements use multiple deadlines; define each with the event it controls so parties know when rights attach or expire.

Contingency Removal Date:

Date by which buyer must remove contingency to proceed to closing.

Inspection Period End:

Final day for inspections and repair requests under the primary contract.

Financing/Appraisal Deadline:

Date to satisfy lender conditions and appraisal contingencies.

Proof of Sale Submission:

Deadline for buyer to deliver required sale documentation for the contingent property.

Closing Date:

Scheduled date for deed transfer and funds settlement.

eSignature vendor comparison for signing Sale Contingency Agreements

Key vendor differences affect cost, bulk sending, audit trail completeness, HIPAA support, and any envelope or usage caps; signNow is listed first for comparison.

	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	Yes, 7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

FAQs: Common questions when using a Sale Contingency Agreement

Answers address legal validity, electronic signing, notarization, amendment, and what to do when financing or sale contingencies fail.

Need help? Contact support

Are electronic signatures valid on contingencies?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA laws when intent, consent, attribution, and retention are met; exceptions for wills and certain court filings still apply.
Do contingencies require notarization?
Generally no for purchase contracts, but deeds and conveyances typically require notarization and may need witnesses in some states; check local recording requirements before closing.
How do parties amend a contingency?
Amendments should be in writing, signed by all parties, and dated; include an explicit effective date and, if using e-signatures, retain the audit trail showing intent and attribution.
What if the buyer cannot sell by the deadline?
If the contingency is not removed by the deadline the seller may terminate, keep remedies in the agreement, or accept a negotiated extension executed in writing by both parties.
Can proof of sale include pending closings?
Acceptable proof should be defined in the agreement; many sellers accept an executed purchase contract plus evidence of financing and scheduled closing, but require final HUD-1/Closing Disclosure for absolute verification.
How do I correct a signed but flawed agreement?
Execute a signed amendment or mutual rescission and refile if necessary; retain both versions and ensure the amendment references the original by date to preserve the audit trail and evidentiary record.

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