Can I waive contingencies when buying a home?

Contingencies exist for a reason: they establish conditions under which a buyer can exit a contract or seek resolution if something goes wrong. When a contingency is waived or limited, that protection changes accordingly.

Common contingencies buyers encounter:

• Inspection or due diligence contingency: typically allows the buyer to investigate the property's condition within a specified period and negotiate based on findings, or exit the deal if findings warrant it
• Financing contingency: protects the buyer if they're unable to secure financing under the agreed terms
• Appraisal contingency: provides options if the property appraises below the purchase price

Can contingencies be waived?

In many transactions, contingencies can be negotiated, modified, or waived, depending on the applicable contract, what both parties agree to, and the transaction circumstances. In competitive markets, some buyers choose to offer fewer contingencies to make their offers more attractive to sellers.

What changes when a contingency is waived?

It depends on what the contingency was protecting against. Waiving an inspection contingency generally means accepting the property in its current condition, whatever an inspection might reveal. Waiving a financing contingency shifts more risk to the buyer if the loan doesn't come through as expected.

Before agreeing to modify or waive any contingency, it's worth understanding exactly what protection it provides, what your contract says about it, and what the consequences would be if the underlying condition isn't met. This is a conversation to have with your agent before making an offer, not after one is signed.

Contract terms and contingency practices vary by transaction and by state. Your agent can explain how the contingencies in your specific contract work and what each one means for you.