What Contingencies Should You Include When Making an Offer on a House?

Updated September 2026

The most common contingencies to include when making an offer on a house in California are the inspection contingency, the loan contingency, and the appraisal contingency, each defaulting to 17 days under the standard purchase contract except the loan contingency, which defaults to 21 days. Additional contingencies cover the title report, HOA documents (if the property is part of an association), and, for buyers who need to sell their current home first, a sale-of-property contingency with a kick-out clause. None of these contingencies expire automatically — each one has to be actively removed in writing, and missing that step can put your earnest money at risk.

What Are the Most Common Contingencies in a California Purchase Contract?

The standard California Association of Realtors purchase agreement builds in several contingencies designed to protect buyers before they're legally locked into the deal. The inspection contingency, sometimes called the property investigation contingency, lets buyers hire inspectors and review the physical condition of the home, and typically defaults to 17 days. The loan contingency protects buyers if their financing falls through, and usually runs 21 days. The appraisal contingency protects buyers if the home appraises below the purchase price, and generally defaults to 17 days as well. If the property is part of a homeowners association, a separate HOA documents contingency gives buyers 5 days after receiving the HOA's governing documents, financials, and meeting minutes to review them and object to anything concerning. A title contingency, usually also 17 days, gives buyers time to review the preliminary title report and object to any liens, easements, or other issues affecting ownership.

How Long Do You Have to Remove Contingencies, and What Happens If You Miss the Deadline?

Contingency periods are counted in calendar days, including weekends and holidays, starting the day after the offer is accepted, and if a deadline lands on a weekend or legal holiday, it automatically extends to the next business day. Importantly, contingencies in California don't expire on their own: a buyer has to sign a specific Contingency Removal form to affirmatively lift each protection. If a buyer hasn't removed a contingency by its deadline, the seller can serve a Notice to Buyer to Perform, which typically gives the buyer 48 hours to either remove the contingency or cancel the contract. If the buyer does neither, the seller may be able to cancel the agreement and the transaction can collapse. Buyers who need more time can request a formal extension using an Amendment to Contract, and sellers will often grant a reasonable one if the buyer can show active progress from an inspector, appraiser, or lender.

What Happens If You Waive the Inspection, Appraisal, or Loan Contingency?

Waiving a contingency can make an offer more competitive in a multiple-offer situation, but each one carries a different risk. Waiving the inspection contingency means agreeing to buy the home as-is, with no ability to renegotiate or walk away over problems an inspector would have caught — many buyers instead do a pre-inspection before writing the offer so they can waive the contingency with real information rather than blind faith. Waiving the appraisal contingency means agreeing to pay the full contract price even if the home appraises lower, since lenders base financing on the appraised value rather than the purchase price, leaving the buyer to cover any gap between the two in cash. If a low appraisal does come in, buyers who kept this contingency can renegotiate the price, cover the gap themselves up to a limit they set, dispute the appraisal with a formal Reconsideration of Value if there's evidence of an error, or cancel the contract and keep their earnest money. Waiving the loan contingency is the riskiest of the three, since it removes the buyer's protection if financing falls through entirely, and it's generally not recommended unless a buyer is already fully underwritten.

What Is a Sale-of-Property Contingency, and How Does a Kick-Out Clause Work?

Buyers who need to sell their current home before they can close on a new one can include a sale-of-property contingency, making the purchase contingent on their existing home selling within a set window. Sellers who accept this kind of offer often protect themselves with a kick-out clause, which lets them keep marketing the property and accept a backup offer; if that happens, the original buyer typically gets a short window, often around 72 hours, to remove their sale contingency and prove they can close without selling their current home first, or the seller can cancel and move forward with the new offer. Because a sale-of-property contingency makes an offer weaker in the seller's eyes, buyers in this position often strengthen their position with a bridge loan, a home equity line of credit, or a rent-back agreement instead.

Frequently Asked Questions About Offer Contingencies in California

Q: How many days do I have to remove contingencies on a home purchase in California? The inspection and appraisal contingencies typically default to 17 days, the loan contingency usually defaults to 21 days, and HOA document review runs 5 days after the documents are received, though all of these periods can be shortened or extended by mutual agreement.

Q: Do contingencies automatically expire if I don't remove them by the deadline? No, contingencies stay in place until a buyer signs a written Contingency Removal form; if the deadline passes without removal, the seller can send a Notice to Buyer to Perform giving the buyer about 48 hours to remove the contingency or cancel.

Q: Is it safe to waive the appraisal contingency to compete in a multiple-offer situation? It carries real risk, since you'd be agreeing to pay the full price even if the home appraises lower and covering any gap in cash; some buyers use appraisal gap coverage with a set cap instead of waiving the contingency outright.

Q: What is a kick-out clause, and how does it affect a sale-of-property contingency? It lets the seller keep marketing the home and accept a backup offer while your sale contingency is in place; if a backup offer comes in, you typically get a short window, often around 72 hours, to remove your contingency or the seller can move forward with the other buyer.

Sources: current 2026 guidance on California Association of Realtors standard purchase agreement contingency periods, Contingency Removal and Notice to Buyer to Perform procedures, appraisal gap coverage and Reconsideration of Value, and sale-of-property contingencies with kick-out clauses. This is general information, not legal or financial advice — consult your real estate agent and a licensed attorney for guidance on your specific contract. Andrea Pazmino-Pace, DRE #02013784.