Mortgage contingency clause

What is Mortgage contingency clause?

As part of the real estate transaction, the residential buyer will have a certain number of days in which to apply in good faith for and obtain a mortgage loan commitment; if there is not a written commitment in that time, then the sale is usually terminated and the down payment money is returned to the purchaser.

Further Reading

For more detailed information, see our related Real Property terms:

• Assumption clause
• Mortgage commitment
• Earnest money
• Down payment

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Stephanie Bagnall

Licensed Attorney and Legal Researcher

Stephanie Bagnall is a Georgia-licensed attorney and legal researcher with experience in accessibility law, compliance, employment law, and legal writing. She helps develop and review BarPrepHero's Legal Terms content for clarity, accuracy, and usefulness to bar exam students.

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