Buyer contingencies are one of the most misunderstood parts of a real estate contract. In NYC, contingencies define when a buyer can walk away without losing their deposit. They also define leverage points during negotiations.

Understanding them is critical before signing anything.

Common Buyer Contingencies in NYC

• Inspection contingency, allowing renegotiation or cancellation after inspection.

• Mortgage contingency, protecting the buyer if financing is denied.

• Appraisal contingency, less common but sometimes included.

• Attorney review, required in New York before contracts become binding.

Each contingency has strict deadlines and written notice requirements.

How Contingencies Actually Function

Contingencies are not open ended escape clauses. Once deadlines pass, the buyer’s deposit is at risk. Sellers often push for shorter contingency windows to reduce uncertainty.

In competitive markets, buyers sometimes waive contingencies. That increases risk significantly and should be done with full understanding of the consequences.

Where Buyers Get Burned

• Missing contingency deadlines

• Assuming verbal agreements are binding

• Waiving inspections without proper due diligence

• Not understanding when deposits become non refundable

Contingencies protect buyers only when used correctly.

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Joseph Ranola | Five-Star Staten Island & South Brooklyn Realtor® (30 + Google reviews)
Associate Broker · Matias Real Estate | Founder · Bridge & Boro Team
Serving 103xx and 11209 / 11214 / 11228 | $25 M + closed volume
📞 917-716-1496 | ranolarealestate.com