Check Your Understanding Answers
- What is a contingency clause?
A contingency clause is a condition attached to an offer to purchase property which must be met in order to make the purchase offer binding.
- What are the two ways to write a “sell” contingency?
A settlement contingency and a sale and settlement contingency
- What is a “kick-out” clause?
A sale and settlement contingency with the right to continue marketing a property after a contract has been accepted but not satisfied.
- List two general guidelines to follow when working with contingencies. (Additional correct answers on page 60.)
- The fewer contingencies the more attractive the offer will be to the seller.
- If possible, limit the offer to a single contingency.
