Pros and cons of removing contingency clauses in real estate transactions

On Behalf of Marcus, Gould & Sussman, LLP | Nov 11, 2025 | Real Estate | When going through a residential real estate transaction, one of the first steps in the process is for the potential buyer to make a purchase offer. The most important part of this offer, of course, is the price they are willing to pay for the property. But that may not be all that is included in the contract. In many cases, people will include contingency clauses. These are specific events that have to happen in order for the contract to be legally binding. If these criteria are not met, the person who made the offer can often walk away without penalty. One of the most common examples of this is when a potential buyer includes a home inspection contingency clause. They will state that they are offering a certain amount of money for the home, but only under the condition that the home passes an inspection. If it does not, they are not obligated to purchase the property. Why would someone remove the clause? The main benefit of removing a contingency clause, which some buyers will do, is that it can increase the odds that their offer will be accepted. If the seller knows that the house does not have to pass an inspection for the offer to be binding, they may be more likely to choose that offer over one for a similar amount of money with a home inspection contingency clause in place. The downside, of course, is that the buyer has far less protection. They do increase the odds that their offer will be selected, but they may be stuck with a home they wish they had not purchased if it fails the inspection and they discover significant issues with the property. Understanding how real estate offers and contracts are drafted is important, and parties on all sides need to know what legal steps to take.