Stacked contingencies are now standard. We’ll show you how these layers interact, which timelines are most critical, and how to keep your contract on track.
Are you planning to buy or sell a home right now in Minnesota? You need to understand how contingencies work. Low inventory has made real estate more competitive, but it has also made transactions more complex. With fewer homes on the market, both buyers and sellers want more protection before they commit. That is where contingencies come in, and they are showing up in almost every deal we manage.
Let’s walk through the most common contingencies we see and what they mean for your transaction:
We always expect a financing contingency. Unless a buyer is paying all cash, the offer will likely include a financing contingency. This protects the buyer if their loan is not approved. If financing falls through and the deal does not close, the buyer may be able to walk away without losing their earnest money, as long as the contingency is still active.
Inspection contingency comes with strict deadlines. Most buyers include an inspection contingency, which gives time to complete a home inspection and request repairs. This contingency has specific deadlines, and missing them can result in lost negotiation power or forfeited earnest money. We make sure our clients stay ahead of these timelines.
HOA properties include a 10-day right of rescission. In Minnesota, if the home is part of a homeowners association, buyers receive a 10-day right of rescission. This gives them time to review all HOA documents and cancel the contract if needed. It is a legal protection that cannot be waived.
“Today’s real estate market is more complex due to stacked, overlapping contingencies.”
Home sale contingencies must be removed correctly. A home sale contingency means the buyer must sell their current home before buying the next one. This must be clearly stated in the purchase agreement and removed correctly. Simply saying, “I am no longer contingent” is not enough. If a seller gets a backup offer, they are not required to wait. They can move forward with the new buyer unless the original contingency is officially removed.
Contingencies run at the same time. Many people assume that contingencies happen in order, but they do not. Most run concurrently. That means the buyer still needs to complete their inspection even if their current home has not sold. This overlap adds pressure and makes coordination essential.
Sellers can include a buyer contingency. We are also seeing more seller-side contingencies. A seller may not agree to close unless they find a new home first. This is called a buyer contingency, and it protects the seller from being left without a place to go. It is one more layer we help manage.
This market is fast-moving and full of contract requirements. If you are not clear on how contingencies work, you risk losing your deal or deposit. We are here to make sure that does not happen. If you have questions or need help with your next move, feel free to call or text us at 952-212-3597 or email us at ChadandSara@edinarealty.com. We are ready to walk you through every step with clarity and confidence.
