Contingency
A condition in a contract that must be satisfied for the deal to move forward, such as financing, inspection, or appraisal.
Quick flashcard
What does Contingency mean on the Texas real estate exam?
Answer: A condition in a contract that must be satisfied for the deal to move forward, such as financing, inspection, or appraisal.
Read the explanation below, then return to the full flashcard deck and try it again from memory.
Contingency definition
A contingency is a condition written into a contract that must be met before the parties are obligated to close. Common examples are a financing contingency, an inspection contingency, and an appraisal contingency.
If a contingency is not satisfied within its deadline, the protected party can usually cancel the contract and, in many cases, recover the earnest money.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Contracts & Agency (16 of 80 National)
From definition to recall
See this term inside a real exam question.
Pass Texas gives you Texas-specific practice, diagnostics across the 14 exam areas, Trap Library, Math Coach, offline access, and one $59.99 purchase. No subscription. No copied exam questions.
Try 5 free questionsThis definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.