How to Handle Contingencies in Montgomery County TX Real Estate Offers

Becca Ellis
Oct 21
2 min read

Handling contingencies in Montgomery County, TX real estate offers is about strategy, clear communication, and protecting your interests—whether you’re a buyer or a seller. In today’s dynamic Texas market, understanding how to navigate these conditions can make or break a deal.

What Are Contingencies in Real Estate?

Contingencies are contractual “escape clauses” that let buyers (and sometimes sellers) back out of a purchase if specific conditions aren’t met. Common real estate contingencies include:

Sale of current home
Successful home inspection
Appraisal meeting (or exceeding) the offer price
Buyer securing financing
Clean property title

How Contingencies Work in Montgomery County

In Texas, including Montgomery County, contingencies are formalized in the real estate contract, often with addenda like the “Addendum for Sale of Other Property by Buyer” from the Texas Real Estate Commission. If the clause is triggered (e.g., buyer’s home doesn’t sell), the contract can be terminated, usually with return of the buyer’s earnest money.

If another buyer submits a backup or competing offer, the seller can often give the original buyer a set deadline (commonly 72 hours) to waive their contingency or step away from the deal.

Key Types of Contingencies

Inspection Contingency: Allows buyers to renegotiate or walk away based on home inspection results. Sellers should be ready to address significant findings if they hope to keep the deal alive.
Appraisal Contingency: Protects buyers by ensuring they don’t overpay if the home appraises below the agreed price. Renegotiation or withdrawal is possible if values don’t align.
Financing Contingency: Lets buyers withdraw without penalty if their loan falls through. Timelines and communication are crucial—for both parties.

Seller Tips for Managing Contingencies

Vet the buyer’s current home sale status—see if it’s listed or under contract
Ask how competitive their local market is
Determine how much time you’re willing to let your property be tied up
Request earnest money or non-refundable deposits to show buyer commitment
Insist on clear deadlines in the contract to keep the process moving

Buyer Tips for Managing Contingencies

Have your current home ready to list or under contract before making a contingent offer
Consider offering a stronger earnest deposit or flexible closing dates to appeal to sellers
Get pre-approved for financing and be transparent about your timeline
Communicate proactively with all parties

Drafting Effective Contingencies

Be as specific and unambiguous as possible about what triggers the contingency (inspection standards, timelines, financing requirements)
Always include firm, realistic deadlines for contingencies to be met or removed
Consult a local real estate agent or attorney for guidance on contract language, especially for properties with unique conditions (acreage, mineral rights, rural land).

Final Thoughts

While contingencies add complexity, they’re essential protections that can smooth transactions for both buyers and sellers in Montgomery County. Successful navigation comes down to preparation, clarity, and professional guidance—the right agent will help you leverage or manage contingencies to secure the outcome you need.