Contingency Listing
Definition and meaning of Contingency Listing in real estate.
A contingency listing is a property listing on the multiple listing service (MLS) where the seller has accepted an offer from a buyer, but the final sale is dependent on the fulfillment of specific conditions. If these conditions are not met, the contract can be terminated and the property returned to the active market.
In more detail
Common contingencies include the buyer securing financing, the home passing a professional inspection, or the buyer selling their current home. During this period, the listing status is updated to show it is contingent or pending. Some sellers choose to keep backup offers in place in case the current transaction falls through.
Buyers and sellers must cooperate to meet the deadlines set in the contract to prevent a breach of agreement.
Key facts
| Category | Buying & Selling |
|---|---|
| Common types | Financing, home inspection, appraisal, and home sale contingencies |
| MLS status | Typically marked as contingent or active-under-contract |
| Risk factor | The sale can fall through if a condition is not met |
A home goes under contract with a contingency listing status because the sale will only close if the buyer successfully sells their current townhouse within a specified timeframe.
Frequently asked questions
Can a seller accept other offers while a listing is contingent?
Yes, in many states, sellers can accept backup offers, but they cannot cancel the primary contract unless the buyer fails to meet a specific contingency deadline.
What happens if a buyer cannot get a mortgage on a contingent listing?
If the contract includes a financing contingency, the buyer can typically cancel the agreement and receive a full refund of their earnest money deposit.