Real estate lingo is its own thing, and we know that real estate agents sometimes get carried away with it and forget that the everyday person is not as used to it. If your agent gets carried away don’t be afraid to ask them to slow down and break these terms down. They know how hard it can be, and they will respect your request to slow down the pace so go ahead and ask!
If you have ever been through a real estate transaction or exposed to any sort of real estate, you may be familiar with the term “contingent,” and by familiar we mean you may have heard it a million times, but you likely didn’t get an explanation as to what it meant.
Think of it as “subject to”
If contingent makes your head spin, replace it with something that you’re comfortable with. The meaning of contingent really comes down to your action being dependent on something else so whenever you hear the word contingent, translate it to ‘dependent on.’ It will help you stay on top of the real estate talk, and just make things easier in case you need to explain them to anybody else.
A fun example
You may already use contingent like a pro, but what if you have to explain it to someone else? One of the stories we use in the office is to picture yourself as a parent with a teenager ready to drive. They have just gotten their permit, and they have been begging for their first car. You make a deal with them, you will get them the car contingent on (subject to) them getting good grades. It’s pretty clear on what that means, if the student doesn’t get good grades, they don’t get the car and that is exactly what happens in a contingent sale.
What is a contingent sale
There are many reasons why a sale could be contingent but it helps empower the buyer and seller to have control over the transaction. Your transaction can be contingent on the clearance of a loan, the sale of a previous home, or maybe a home inspection. Whatever the contingent terms may be, they help to make both parties accountable and secure on their end of the deal.
We hope that helped to clear up some of the confusion over contingencies. Demystifying real estate terms can sometimes feel like learning a second language, what terms did you have a difficulty with? We’d love to help others get their real estate lingo down!