What Are Contingencies in a Real Estate Contract in Ohio? – Cin-Day Group Realtors Explain

When buying or selling a home in Ohio, you’ll often hear the term “contingency.” But what does it really mean, and how do contingencies impact your transaction? At Cin-Day Group, we help clients in Greater Dayton and Cincinnati navigate these details every day. Here’s what you need to know.

✅ What Is a Contingency?

A contingency is a condition written into a real estate contract that must be met for the sale to move forward. If the condition isn’t satisfied, the buyer (and sometimes the seller) may have the right to cancel the contract without penalty.

In short: contingencies protect both parties and make sure no one is locked into a deal until key requirements are met.

🏡 Common Types of Contingencies in Ohio

1. Home Inspection Contingency

• Allows the buyer to hire a licensed inspector.

• If significant issues are found, the buyer can request repairs, negotiate a price reduction, or walk away.

2. Appraisal Contingency

• Required when a buyer is using financing.

• Ensures the home appraises for at least the purchase price.

• Protects buyers from overpaying and lenders from lending on an overpriced property.

3. Financing (Mortgage) Contingency

• Gives the buyer time to secure mortgage approval.

• If financing falls through, the buyer can cancel the contract without losing their earnest money.

4. Sale of Buyer’s Home Contingency (less common in today’s market)

• The buyer’s purchase depends on selling their current home first.

• Can make offers less competitive, but still used in certain situations.

5. Title Contingency

• Ensures the home has a “clear title” with no liens, claims, or legal issues.

• If title problems can’t be resolved, the buyer can withdraw from the deal.

🔑 Why Contingencies Matter for Buyers & Sellers

• For Buyers: Contingencies act as safeguards, giving you time to investigate the home and secure financing before fully committing.

• For Sellers: Understanding contingencies helps you evaluate offers. A “cleaner” offer with fewer contingencies may be more attractive than a higher-priced offer with multiple conditions.

👩‍💼 Cin-Day Group’s Advice

Every real estate contract is different. Some contingencies are standard, others are negotiable. That’s why it’s critical to have a knowledgeable Realtor® on your side to review terms, explain risks, and negotiate on your behalf.

At Cin-Day Group, we walk our clients through each step so you feel confident from contract to closing.

📲 Thinking About Buying or Selling in Cincinnati or Dayton?

Whether you’re writing your first offer or reviewing multiple bids on your home, our team is here to guide you. Contact the Cin-Day Group at Coldwell Banker Heritage today to discuss your real estate goals.