# Contingency

*Real Estate — Finicade finance glossary*

A contingency is a condition that must be met for a purchase to proceed: financing approval, a satisfactory inspection, an appraisal at price.

A contingency is a condition that must be satisfied for a purchase to proceed — financing approval, a satisfactory inspection, an appraisal at price, the sale of your current home. Each one is an exit that protects your deposit. In competitive markets buyers waive them to strengthen offers, which converts a conditional commitment into an unconditional one and puts real money behind an unverified assumption.

**Also known as:** contingencies, conditions precedent, subject to

**Related terms:** [Earnest Money](https://finicade.com/glossary/earnest-money), [Home Inspection](https://finicade.com/glossary/home-inspection), [Home Appraisal](https://finicade.com/glossary/home-appraisal), [Escrow](https://finicade.com/glossary/escrow), [Mortgage](https://finicade.com/glossary/mortgage)

Source: https://finicade.com/glossary/contingency