How to handle a seller who wants an unusual contingency in the contract
When a seller proposes an unusual contingency in the contract, your first step is to understand his or her true motivation behind it. Some contingencies are deal-killers, while others can be managed with clear communication and a firm timeline.
October 15, 2026 · 3 min read
Understand the seller's underlying motivation
Before you dismiss an unusual contingency, try to get to the root of why the seller is asking for it. Sometimes, a strange request stems from a simple misunderstanding, a personal need, or a past bad experience.
Ask open-ended questions like, "Can you tell me more about why this specific condition is important to you?" or "What outcome are you hoping to achieve with this clause?" His or her answer might reveal a straightforward solution.
Assess the impact on your deal and timeline
Once you understand the contingency, evaluate how it affects your ability to close the deal as planned. Does it introduce an unacceptable level of risk? Does it extend the closing period beyond what you or your cash buyer can tolerate?
For instance, a seller asking to stay in the property for six months after closing creates a landlord-tenant relationship and significant holding costs for you. A request for a specific, sentimental item might be easily granted.
Weigh the risk against the potential profit
Every deal has risk, but an unusual contingency can tilt the scales. Consider the potential profit from the deal and whether it justifies taking on the additional risk or complexity the contingency presents.
If the contingency makes the deal too speculative, or if it significantly erodes your profit margin, it might be time to walk away. Not every lead turns into a deal, and knowing when to cut ties is a crucial skill.
Negotiate to modify or mitigate the contingency
Often, you can negotiate the terms of a contingency. For example, if a seller wants to remove a specific fixture, you might agree if he or she provides a credit at closing for its replacement.
If the seller wants an extended stay, you could propose a shorter period or a lease-back agreement with a daily fee. The goal is to find a middle ground that meets his or her core need without jeopardizing your investment. Remember, communication is key when you are on the /learn/first-call-with-a-motivated-seller.
When to walk away from a deal with a problematic contingency
If the contingency is non-negotiable, creates undue risk, or makes the deal unprofitable, you must be prepared to walk. Some sellers have unrealistic expectations or personal demands that simply do not align with an investor's model.
It is important to remember that there are always other deals. Holding onto a bad deal due to emotional attachment or fear of missing out will cost you time and money that could be spent on a better opportunity. Focus on /learn/how-to-work-your-leads and maintain your criteria.
Questions people ask
What's an example of an unusual contingency?
An unusual contingency could be a seller wanting to take an entire mature garden, or demanding the buyer pay for his or her new home's closing costs, or requiring a specific charity donation upon sale.
Can I put a time limit on a seller's contingency?
Yes, absolutely. Most contingencies should have clear deadlines for their satisfaction or waiver. This protects you from open-ended obligations and keeps the deal moving forward.
Should I consult an attorney for strange contingencies?
It is always prudent to consult with an attorney when dealing with complex or unusual contract clauses. This is not legal advice, and a professional can help you understand the implications and risks specific to your state and situation.
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