Wondering what a contingency period is and how it impacts your home sale? Keep reading to learn everything you need to know!
First, a Definition:
The contingency period refers to a time period that starts the date an offer is accepted and ends on the contingency removal date, which is a date named in the accepted offer.
Length of a Contingency Period:
In California, the period is normally 17 days from the date the offer was accepted. If an offer is accepted March 1 and the contingency removal date is defined in the offer as 17 days from acceptance, then the contingency period will be from March 1 to March 17. However, savvy sellers can often shorten this period, as explained in this post.
What Happens During This Time:
During this period, your buyer gets an opportunity to review your seller's disclosure packet and can hire professionals to conduct real estate inspections, such as a general home inspection or termite inspection. On or before the contingency removal date, the buyer is supposed to either:
- Submit a contingency removal form, indicating an intent to proceed with the home purchase or
- Submit escrow cancellation instructions if they have decided they no longer wish to move forward with the sale.
Have more questions about this topic? Ask us.