Understanding Contingencies When Selling a Home in California (2026)

Contingencies are one of the most important — and misunderstood — parts of a California real estate transaction. For sellers, understanding how contingencies work helps reduce uncertainty and manage risk during escrow.

Here's what sellers should know in 2026.

What Is a Contingency?

A contingency is a condition in the purchase agreement that must be satisfied before the transaction can move forward. If a contingency is not met or removed within the agreed timeframe, the buyer may have the right to cancel the contract.

Contingencies provide structure and protection during escrow.

Common Types of Contingencies

While terms vary by transaction, common contingencies include:

Inspection contingencies
Appraisal contingencies (when financing is involved)
Loan or financing contingencies

Each contingency has a defined timeline outlined in the purchase agreement.

Why Contingency Timelines Matter

Contingency periods create key milestones during escrow. Sellers should pay close attention to:

When contingencies are scheduled to expire
Whether removal notices are provided on time
How delays may affect the transaction timeline

Once contingencies are removed, the transaction generally becomes more secure.

What Happens If a Contingency Is Not Removed?

If a contingency is not satisfied or removed:

The buyer may request an extension
The parties may renegotiate
The buyer may have the option to cancel, depending on the agreement

Understanding these outcomes helps sellers assess risk and make informed decisions. Learn more about what can delay a home sale and how to reduce those risks.

How SnapDwell Helps Sellers Track Contingencies

SnapDwell provides tools that help sellers:

Track contingency deadlines
Monitor buyer progress
Stay informed about next steps
Access licensed broker oversight when questions arise

Clear visibility reduces stress and uncertainty during escrow.

Final Thoughts

Contingencies are not obstacles, they are part of a structured process designed to protect both parties. Once contingencies are removed and escrow moves toward completion, you'll be ready for closing day.

By understanding how contingencies work and monitoring timelines carefully, sellers can move through escrow with greater confidence and fewer surprises.

Ready to sell your home in California with full transparency? Learn more about selling your home in California or create your SnapDwell account to get started today.