Offers, contingencies, escrow and closing in the US
What a purchase agreement contains, which contingencies protect you and how closing works.
Applies to: United States. Reviewed 2026-09-25.
Key takeaways
- Earnest money is often 1–3 per cent and can be lost if you withdraw without a contingency to rely on.
- Inspection, appraisal and financing contingencies are the most common protections.
- Track contingency deadlines; miss one and the protection can lapse.
Contingencies
| Contingency | Protects you if |
|---|---|
| Inspection | The inspection finds serious defects |
| Appraisal | The appraisal is below the price |
| Financing | The loan is not approved |
| Home sale | Your current home does not sell |
| Title | There are defects in title |
Closing
- Review the Closing Disclosure at least three business days before.
- Do a final walk-through.
- Sign the loan documents and receive the deed.
- The deed and mortgage are recorded with the county.
Questions to ask
- What happens if the appraisal comes in below the price?
Red flags
- An offer with no contingencies to beat competitors, without understanding the risk.
Sources
- Closing Disclosure explainer (Consumer Financial Protection Bureau)