Usually this means that the buyer and seller have agreed on a price and terms of sale. The contingency is usually where the buyer has a home to sell or close before they can finance the purchase of the home they have under a contingency. There are various other contingencies that can be included in a contract such as: B. the buyer needs to approve the inspection of the home, their financing needs to be approved, they might want to be sure they can add a workshop, etc.
There is always a time limit on the contingency for how long they have to sell their home, or if another buyer makes an offer and the seller prefers it, there is a “kick out” clause in most contingencies. Example: The house is under contract and a better offer comes up, the seller can have a 48 hour kick out and tell the buyer they have 48 hours to lift the contingent liability and buy the house or it goes to buyer #2. If buyer #1 clears quota and is unable to close, their deposited funds will typically be forfeited.