Here is another video on contingencies. Are you a seller? This one explains what to expect during a buyer's contingency time frame and what your rights are.
A contingency is a condition that has ro be met prior to the close of escrow, or prior to the transaction continuing on.
How does a buyer's contingency timeframe affect the seller? Something that we would like to emphasize is- the Residential Purchase Agreement is an "Active Method Contract". This means that, any and ALL agreements must be in signature by BOTH the buyer and seller in order to be binding. 3 common contingnecies that are pre-written in the contract are Inspection (17 days), Appraisal (17 days), and Loan (21 Days). These timeframes can be adjusted in writing by buyer and seller if both parties agree. All these timeframes begin on the date the offer was accepted.
Once we get an accepted contract, we will report it to the MLS. This will make the listing now Active Contingent (AC for short). Until the first buyer defaults or cancels, you cannot sell your home to anyone else. The buyers you are in contract with get first dibs. However, you are allowed to accept back-up offers from other buyers.
Up until the buyer removes their contingencies, the buyer is allowed to cancel and receive their Earnest Money Deposit (EMD) back. Since the contract is "active-method", if the contingency is due to be removed on the 17th day and the buyers do not remove it, it is still in effect on the 18th day. This is why it is very important for your Realtor to stay on top of these timeframes. There are things you can do to ensure that the buyers do not string you along. We will do another Tip Tuesday on this in the future.