If you’re in the market for a new home, you’re likely no stranger to browsing online listing services. During your search, you may come across a listing that’s marked active contingent. What does this mean, and how does it impact the home-buying process? This article will define active contingent and explore the common types of contingencies.
Table of Contents
- Key Points
- • Active contingent means that a seller has accepted an offer, but the sale depends on specific contingencies being met before closing.
- • Common contingencies include the buyer securing financing, the buyer selling their current home, the property appraising at value, or the property passing inspection.
- • Unlike pending status, active contingent listings remain on the market and may accept backup offers.
- • Contingencies protect buyers by allowing them to exit the contract and recover their deposit if agreed-upon conditions aren’t satisfied.
- • Sellers may include kick-out clauses to continue marketing the property and potentially accept stronger noncontingent offers.
What Is Active Contingent Status?
When an active real estate listing has an active with contingency status, it means that the seller has accepted a buyer’s offer, but there are certain conditions (known as contingencies) that have not yet been met. These contingencies must be resolved before the sale of the property can be finalized.
Other buyers interested in the property may choose to submit a back-up offer in case the contingencies aren’t met and the deal falls through.
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How It Differs from Other Listing Statuses
Every industry has its jargon, including real estate. Active contingent is just one of several statuses buyers might encounter while house hunting.
An active listing, for instance, means that a property is currently on the market. Offers on the property may have been submitted, but none have been accepted yet, so buyers have the green light to make an offer.
Under contract is often used interchangeably with active contingent. Both mean that the seller has accepted a buyer’s offer, but the sale still depends on certain circumstances being resolved.
A listing with a pending status is farther along in the transaction process. The key difference between pending and contingent status is that the buyer contingencies have been satisfied when a listing is marked as pending. Alternatively, it could mean a buyer made an offer with no contingencies and the deal is moving toward closing, barring any unexpected issues with an inspection or securing a home loan.
Buyers can make an offer on a property, even if the status is pending, though it’s up to the sellers if they want to continue showing the home.
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Common Types of Active Contingent Scenarios
What does active contingent mean in different scenarios? There are several types of contingencies that can be included when making an offer on a home. Here’s a look at the most common contingencies in real estate transactions.
Home Sale Contingency
A home sale contingency means the buyer’s offer depends on the sale of their current home.
There are two types of home sale contingencies: a sale and settlement contingency and a settlement contingency. With a sale and settlement contingency, the buyer has not yet accepted an offer on their current home. Meanwhile, a settlement contingency involves a buyer with a house under contract, but not yet sold.
According to a National Association of Realtors® study, around 54% of repeat buyers in 2025 used proceeds from their home sale to make a down payment on their new home, meaning buying and selling a house at the same time — and that settlement contingencies are probably quite common.
Financing Contingency
A financing contingency, also known as a mortgage contingency, is exactly that: a clause that allows buyers to walk away from a home purchase if they’re unable to secure financing. There’s typically a time frame included with a financing contingency, often 30 to 60 days, that the buyer and seller agree to in the purchase contract.
Either the seller or buyer can exit the agreement during the financing contingency period without penalty, meaning that the buyer can get their deposit back and the seller can accept other offers.
Financing a home purchase isn’t just for first-time homebuyers — around 74% of home buyers used financing in 2025. Getting mortgage preapproval before making an offer on a home can help reduce the risk of not qualifying for financing later on.
Appraisal Contingency
What is an active contingent if an appraisal is involved? If a contract has an appraisal contingency in place, the buyer can back out of the deal and get their deposit back if the property doesn’t appraise for the amount they agreed to purchase it for.
Home appraisals are typically required when taking out a mortgage or refinancing to determine the fair market value of a property. If the appraisal comes in lower than the offer, buyers have options to keep the deal alive instead of walking away. Namely, they can renegotiate with the seller or make up the appraisal gap with a larger down payment.
Inspection Contingency
An inspection contingency allows buyers to exit a deal if major defects or structural issues are identified during a home inspection. If making an offer with an inspection contingency, the buyer has a set period (usually seven days) to hire an inspector. The home inspection cost is paid by the buyer.
A 4-point inspection reviews the property’s major systems, including electrical; heating, ventilation, and air conditioning; plumbing; and roofing, which may be all that a homeowner’s insurance company requires. But a more thorough home inspection might reveal issues that a 4-point one would miss, so it’s worth getting a full home inspection. Buyers can also hire a specialist to examine any issues identified during an inspection in more detail.
An inspection contingency may include a maximum dollar amount for repairs that allows the buyer to walk away from the contract. If they choose to negotiate instead, there’s typically a timeframe for the seller to make necessary improvements or lower the sales price to match the cost of repairs.
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Implications for Buyers and Sellers
Contingencies have implications for both buyers and sellers. For sellers, it’s important to review the terms of any contingencies and assess whether it’s likely they can be resolved for the sale to move forward in a timely fashion.
Suppose an offering includes a home sale contingency. Sellers can practice due diligence by checking if the buyer’s home is currently on the market, and if so, what the listing price is and how long it’s been on the market. This information can help decide if the risk associated with the contingency is worth taking.
Contingencies can provide a safety net for buyers to get their deposit back and exit a deal if their mortgage approval or sale of their current home falls through. Although limiting contingencies could make an offer more attractive, it’s equally important for buyers to exercise due diligence in making sure they’re prepared to move forward with a home purchase. This could mean paying for repairs out of pocket or taking out a bridge loan to close on a new home before selling a previous residence.
Impact on Real Estate Markets
Homes with active contingent status are still on the market, meaning buyers can request to view a property and make an offer.
Since contingencies pose the risk that a deal will fall through, some sellers include a “kick-out” clause in the agreement to increase their chances of getting a better offer. With a kick-out clause, the seller can accept a noncontingent second offer while the property is still active contingent. In this scenario, the buyer who made the first offer can either settle their contingencies or back out of the deal.
The Takeaway
Active contingent simply means that a seller has accepted an offer with contingencies that haven’t yet been met. The meaning of this term varies from deal to deal and may involve conducting a home inspection, securing financing, or a buyer selling their previous home.
It’s important to have your financial ducks in a row if you’re considering an offer on an active contingent property. That way, you’ll be prepared if the initial deal falls through.
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FAQ
Can I make an offer on an active contingent property?
Yes, you can make an offer on a property with active contingent status. This will serve as a backup offer in case the initial deal falls through.
How long does active contingent status typically last?
A property has an active contingent status until all contingencies are resolved. However, the window for resolution typically spans 30 to 60 days.
Is an active contingent listing still considered on the market?
Yes, an active contingent listing is still on the market. This means it can be shown to interested buyers, and the seller can accept backup offers.
How does active contingent differ from a pending sale?
A pending sale is moving forward to closing, whereas active contingent status means that certain contingencies, such as financing or a home sale by the buyer, haven’t yet been met.
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