Home sale contingency.

In plain English

A home sale contingency is a condition in a purchase offer that makes the deal depend on the buyer selling their existing home first. It protects buyers who need the proceeds or cannot carry two mortgages, letting them walk away and keep their earnest money if their current home does not sell by a deadline. Sellers are often wary of it because it ties their sale to a home they do not control, so in a competitive market such offers are weaker. Sellers may add a kick-out clause that lets them keep marketing and accept a better offer.

01Why it matters

The contingency protects a buyer from owning two homes at once, but it also makes an offer less attractive, so understanding the tradeoff shapes how you compete.

02The math, step by step

You offer on a 450,000 dollar home with a home sale contingency giving you 60 days to sell your current place. If it does not sell in time, you can withdraw and recover your earnest money.

03What this is NOT

04Receipts

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