Sale-of-home: buyer must sell theirs first — often with a kick-out clause for the seller
Before you read
Test yourself first: 2 questions
Question 1 of 2
Removing a contingency (e.g., financing or inspection) means the buyer:
Answer: A. Satisfying or waiving a contingency removes that escape clause; once all are removed, the contract is firmer and the deposit is more at risk.
Question 2 of 2
Process by which asbestos-containing material is sealed or coated to prevent the release of fibers is called:
Answer: B. Encapsulation seals or coats asbestos so fibers cannot escape into the air, an accepted alternative to removal for intact material.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Financing: buyer exits with earnest money if the loan falls through by the deadline
- Inspection: negotiate repairs, accept, or walk within the option/inspection period
- Appraisal: renegotiate or exit if value comes in low
- Sale-of-home: buyer must sell theirs first — often with a kick-out clause for the seller
- Miss a deadline and the contingency is usually WAIVED
Contingencies — Escape Hatches: FAQs
Is Contingencies — Escape Hatches on the real estate exam?
Yes. Contracts & Transfer of Title is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
