Jeni VanOrnum | Real Estate Insights & Education

Contingencies protect first-time homebuyers during the purchase process. I’m Jeni VanOrnum, your Douglas County real estate agent, explaining the critical contingencies you need in 2024.

What Are Contingencies?

Contingencies are conditions that must be met for your home purchase to proceed. They’re built into your contract and provide legal ways to terminate the agreement and recover your earnest money if specific conditions aren’t satisfied. Think of them as protective escape clauses.

Inspection Contingency

This is your most important protection. You have a specified period (typically 7-10 days in Colorado) to inspect the property and either approve it as-is, negotiate repairs, or terminate the contract. During this time, you can back out for any reason. After this period expires, backing out means forfeiting your earnest money.

Financing Contingency

This contingency protects you if your lender denies your loan or can’t meet agreed terms. It specifies a deadline (typically 21 days) for your financing to be approved. If you diligently pursue financing but get denied, you receive your earnest money back.

Appraisal Contingency

If the appraisal comes in below purchase price, the appraisal contingency lets you renegotiate or terminate. For example, if you offer $450,000 but the home appraises at $430,000, you can ask the seller to lower the price, bring additional $20,000 cash, or walk away with your earnest money returned.

Title Contingency

This protects you if title issues emerge—liens, easements, ownership disputes. If the seller can’t provide clear title, you can terminate.

HOA Document Review

Colorado law gives buyers the right to review and terminate based on HOA documents. Many Douglas County communities have HOAs. You can back out if HOA rules, fees, or financial health concern you.

Managing Deadlines

Missing deadlines can cost you money. Work closely with your agent to track all deadlines. I use detailed timelines ensuring you meet every deadline and maintain all protections.

Get Protected

Ready to make protected offers? Contact Jeni VanOrnum today for proper contract contingencies.