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contingency clause

See alsocondition(s) Related Terms: Dictionary of Real Estate Terms condition(s)

provision(s) in a contract that some or all terms of the contract will be altered or cease to exist upon a certain event.

Example: If a house is destroyed by fire before closing, the buyer is not obligated to complete the purchase.

Example: If a loan that is described as a condition cannot be arranged, the buyer is not required to complete the transaction and may receive a refund of any earnest money.

Referring Terms: terms

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contingency clause