A contingent home is one where the seller has accepted an offer, but the sale isn't final yet. Before the deal can close, certain conditions need to be met. If those conditions aren't satisfied, the buyer can walk away, often without losing their earnest money deposit. It's one of those terms that gets used constantly in real estate but rarely gets explained well. Here's everything you need to know.
What is the difference between contingent and pending?
Contingent means an offer has been accepted but conditions still need to be met. Pending means those conditions have been satisfied and the deal is moving toward closing.
| Status | What It Means | Can You Still Make an Offer? |
|---|---|---|
| Contingent | Offer accepted, conditions still need to be met | Sometimes, as a backup |
| Pending | Conditions met, closing is in progress | Rarely |
A contingent home still has some uncertainty baked in. A pending home is much closer to the finish line. If you're a buyer eyeing a contingent listing, there's still a chance, slim as it may be. If it's pending, it's almost always spoken for.
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What are the most common types of contingencies?
Contingencies are conditions written into a purchase contract that must be satisfied before the sale can close. Here are the ones you'll run into most often and what they actually mean for the deal.
Inspection contingency. The buyer has the right to have the home professionally inspected. If significant issues turn up, they can request repairs, negotiate the price, or back out entirely. Most inspection windows run 7 to 14 days.
Appraisal contingency. The lender requires the home to appraise at or above the purchase price. If it comes in low, the buyer can renegotiate, make up the difference in cash, or exit the contract without penalty.
Financing contingency. Even if a buyer is pre-approved, final loan approval isn't guaranteed. A financing contingency gives the buyer a way out if their mortgage falls through before closing.
Home sale contingency. Some buyers need to sell their current home before they can purchase a new one. This contingency protects them if their existing home doesn't sell in time. Sellers tend to be less receptive to this one, especially in a competitive market.
Title contingency. Before closing, a title search is conducted to confirm the seller has the legal right to sell the property and that there are no outstanding liens or ownership disputes. If problems surface, the buyer can walk.
What does "active contingent" mean?
Active contingent is a specific MLS status meaning the home is under contract but still being shown to other buyers. It signals the deal is alive but not locked in.
You'll sometimes see this paired with a kick-out clause. Here's how that works: the seller accepts an offer with a home sale contingency but reserves the right to keep showing the property. If a better offer comes in, the original buyer typically gets a short window, often 24 to 72 hours, to remove their contingency and proceed or step aside.
Not every MLS uses this status. In some states and markets, you'll see "continue to show" or "CTS" used in a similar way.
Can you still make an offer on a contingent home?
Yes, you can submit a backup offer on a contingent property, and it's often worth doing. If the original deal falls through, a backup offer puts you next in line without having to start from scratch.
A few things to keep in mind if you go this route. Your offer is not binding on the seller until the first contract collapses. You may be asked to sign a backup offer addendum. And you'll want to stay in close contact with your agent so you can move quickly if the contingency is removed and the original deal dies.
It's not a guaranteed path to homeownership, but it's a smarter move than walking away from a home you want just because someone got there first.
What happens if a contingency isn't met?
In most cases, the buyer has the right to cancel the contract and get their earnest money back. If the buyer chooses to waive a contingency and then tries to back out anyway, they risk losing that deposit.
This is why it's important to understand exactly what you're agreeing to before you sign anything. Contingencies exist to protect buyers, but they only work if you know how to use them. Unmet contingencies are among the top common reasons a real estate closing is delayed.
What does this have to do with home warranties?
A home warranty is one of the most practical protections a buyer can put in place once contingencies are cleared and closing is in sight. A home inspection tells you the current condition of the systems and appliances in a home. A home warranty covers what happens after you move in, when things break down from everyday use.
If you're in the process of buying a home and want to understand how a Liberty Home Guard plan can protect your investment after closing, request a free quote or call us today.
