Contingency Removal
The form a buyer signs to drop the inspection, appraisal or loan contingency and move the deal closer to closing.
What it is
A contingency gives the buyer a way out of the deal if something goes wrong, like a bad inspection, a low appraisal or a loan that falls through. A contingency removal is the form the buyer signs to give up one or more of those protections. After a contingency is removed, backing out can put the buyer's deposit at risk.
When it's used
- After the buyer is satisfied with the inspections
- After the appraisal comes in at or above the price
- After the lender approves the loan
- Before the deadline in the contract, or the seller may be able to act
What's on it
- The property and the contract it belongs to
- Which contingencies are being removed
- The buyer's signature and date
- Any contingencies that are still active
Tips and common mistakes
- Buyers should only remove a contingency when they're truly ready
- Remove each one on time or ask for an extension before the deadline
- Check that the loan is really approved before removing the loan contingency
- Send the signed removal to the other agent and escrow the same day
How your Akoni VA handles it
Your VA tracks every contingency date, reminds you and the buyer ahead of time, prepares the removal form and sends it to everyone once it's signed.
This page is general information to help agents and clients understand the form. It is not legal or tax advice. Forms and rules vary by state and change over time, so always use your brokerage's current version and check with a qualified professional.