When should I remove contingencies?

Updated 2 months ago ​by Aneesah Emeka

As the Buyer during the escrow period, you have the right to complete your inspections, request for repairs, ensure that the property appraises for a value at or above the purchase price, get your loan approved, and agree to move forward with the purchase or cancel the escrow and get your deposit back. 

The seller may be impatient for this period to end as they are missing out on other potential buyers and wondering if you will still wish to move forward with the purchase of their home. At the end of each contingency periods, as per your offer contract, you must either remove your contingencies in writing and move forward with the purchase or cancel the escrow and get your deposit back.

Some contingencies may be removed right away when you present your offer. Only do this if you are confident in moving forward with the sale because should you want to cancel for any reason you would risk losing the earnest money deposit.

There are several points during the offer process where you remove contingencies: 

  1. When you present your offer: If you're making an offer on a competitive house and are confident in moving forward, some contingencies, such as your appraisal or inspection contingencies, can be removed right away. Note: should you cancel, you would risk losing your earnest money deposit.
  2. At the end of each contingency period: At the end of each contingency periods, as per your offer contract, you must either remove your contingencies in writing and move forward with the purchase or cancel the escrow and get your earnest money deposit back.

Learn more about common contingencies here