The clause in the real estate purchase contract that sets a deadline for buyer procurement of a mortgage loan commitment. The contingency date protects both the buyer and the seller. If the buyer is unable to obtain a mortgage loan commitment by this date, the seller can cancel the loan or provide an extension. If the buyer surpasses this contingency date without an extension and later fails to obtain a mortgage loan, then the seller can sometimes retain the earnest money deposit. See also Contingency Date entry. For more information, see the "Real Estate Sales Contract" article in the "Real Estate In-Depth" section.
Was this article helpful?
This book makes it easy to not only buy a home, but figure out everything that you need to do, even get a loan. In simple and easy to understand language, it talks about where you should buy a home, what to look for in a home, how to find a home, how to get an agent, how to get a mortgage and more. This is a step by step process that you, a new home buyer, can use to purchase a home.