Top-3 Takeaway: What Happens If You Miss a Contingency Deadline?

There are timelines for contract contingencies defined in every contract. The FOCUS on NoVA Real Estate team explores what happens when these deadlines are missed. For more information contact us today!

“What happens if you miss a contingency deadline?”

Well, lets define what is a contingency. It is an agreement that you, the buyer, have made with the seller that you will conduct an item, like a home inspection, within a certain time period, and if unacceptable, you can walk away (void) from the contract and get your earnest money deposit back.

What are the main ones? The main contingencies written into a contract are the home inspection, appraisal, and a review of the HOA or Condominium documents. There is a separate addendum for financing, and that is a little bit different than the rest of the contingencies that we write.

Can you do an extension if you’re not going to meet that deadline? Yes, you can do an extension, however it must be agreed to in writing by both the buyer and seller.

If you miss the deadline what does that mean? That means that you’re buying the house as it is, that if you miss it, you don’t get that period back. If not protected by the contingency, and you do not close on time, you could be in breach of contract, lose your earnest money deposit, and the seller could come after you for additional damages.

For more information contact the FOCUS on NoVA Real Estate team today.