Contracts

What is a 'contingency removal' in a Nevada real estate transaction?

AThe process of removing unwanted clauses from a listing agreement
BThe formal process by which a buyer declares a contingency satisfied and waives their right to cancel based on that contingency, committing more firmly to the purchase✓ Correct
CA document removing the seller's right to cancel the contract
DThe automatic expiration of all contingencies at closing

Explanation

When a buyer's contingency is satisfied (financing approved, inspection completed satisfactorily, appraisal at value), the buyer removes or waives that contingency, typically in writing. Once removed, the buyer generally cannot cancel based on that issue without forfeiting earnest money. In Nevada's competitive market, sellers sometimes request pre-emptive contingency removals as negotiating leverage. Contingency removal deadlines in the contract are important — failing to remove by the deadline may allow the seller to cancel.

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