What are contingencies in a commercial real estate contract?

Contingencies are conditions that must be satisfied before a commercial transaction proceeds to closing. Common contingencies may relate to financing, inspections, due diligence, environmental reviews, title matters, or other agreed-upon requirements.

Contingencies help establish expectations between the parties and provide time to evaluate important aspects of the property before completing the purchase.

Every transaction is unique, and I’d be happy to discuss the types of contingencies commonly considered in commercial real estate transactions.