Contracts

In Idaho, what is a 'contingency' in a real estate purchase contract?

AA required contract provision mandated by IREC
BA condition that must be satisfied before the parties are obligated to complete the transaction✓ Correct
CA penalty clause for late performance
DA description of what personal property is included in the sale

Explanation

A contingency is a condition precedent that must be fulfilled before the parties' obligations become final. Common Idaho purchase contract contingencies include: financing contingency (buyer must obtain loan approval), inspection contingency (buyer is satisfied with inspection results), and appraisal contingency (property must appraise at or above purchase price).

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