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How Does the Contingency Removal Form Work in California Real Estate?

Updated: Aug 12, 2023

Are you planning to sell a house in California? Well, get ready and brace yourself for the number of paperwork you will be doing. California has the most complex real estate laws in the country.

Sellers need to comply with a lot of legal requirements - and there’s also the contingency removal form which should be prioritized.

But what is a contingency?

According to Mike Chou, a California real estate agent with 12 years of experience in the industry, a contingency protects the buyer where it allows them to back out without any consequence.

Many real estate deals in the US have include contingencies however it’s only in California where you need to complete a contingency removal form in order for the sale to move and close.

There are three primary contingencies. First is the inspection contingency where it allows the buyers to check or inspect the house physically and look into its condition. Second is the appraisal contingency which gives freedom to the buyer to back out if the house is appraised to a lower value. On the other hand, in loan contingency, the buyer may back out if they can’t get their loan approved.

The use of contingency removal depends on the number of contingencies and the time period in which the buyer needs to sign off. A contingency is already removed after the buyer signs it and the listing agent has already received it.

The removal of the contingencies helps the seller but it has to be completed by the buyer.

This is why there are times when the removal of the contingency may lapse in time because your buyer’s real estate agent has no enthusiasm to finish it on time. This is also one of the reasons why the agents of the sellers need to be on top of this part of the process.

Keeping tabs on the contingency removal forms is a must especially in California. It may be a minor detail in the real estate process but it can cause problems that may cost money and may delay the sale of your home.

Thinking of selling your home or have general questions, please contact The Chou Team today at (626) 653-6903 or email at

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