Home Sale Contingency creates conservative conditions for those who want to buy a new house from the sale of an old house. Although it is easier to sell one home before buying another property in most cases, the timing and financing don’t always work out that way. A home sale contingency gives the buyer a specified amount of time to sell and settle their existing home to finance the new one. This type of contingency protects buyers because if an existing home doesn’t sell for at least the asking price, the buyer can back out of the contract without legal consequences.Of course, this condition may be difficult for the seller because who may be forced to pass up another offer while waiting for the outcome of the contingency. The seller retains the right to cancel the contract if the buyer’s home is not sold within the specified number of days.