2026-10-30 · 4 min read · Orange County
What Contingencies Should I Keep in My First Offer in California?
The short answer
Most first-time buyers are best protected by keeping an inspection contingency, a loan contingency and an appraisal contingency, plus time to review the seller's disclosures, the preliminary title report and any HOA documents. Each one is a written condition that lets you cancel for a stated reason before a deadline. Shortening a contingency can make an offer stronger. Waiving one means you take on that risk, and it can put your deposit on the line.
What Is a Contingency, and Why Does It Matter So Much?
What contingencies should you keep in your first offer in California? For most first-time buyers in Orange County, the short list is inspection, loan, appraisal and document review, because those protect the money you worked so hard to save.
I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. I want you to know what each contingency protects before you write an offer.
A contingency is a condition in your purchase contract. If the condition isn't satisfied, you may be able to cancel by the deadline in your contract. Once you remove a contingency, that protection is gone.
This article is general information, not legal advice. For questions about your own contract, please talk with a real estate attorney.
Which Contingencies Protect First-Time Buyers Most?
Inspection or investigation. This gives you time to have the home inspected and to review the reports. The California Department of Real Estate (DRE) reference book explains that a typical purchase agreement sells the home in its present condition, subject to the buyer's right to inspect and investigate. You then approve the condition or ask for repairs. My article on your first home inspection explains what to expect.
Loan. This protects you if your financing doesn't come through.
Appraisal. Lenders base the loan on the appraised value. The Consumer Financial Protection Bureau (CFPB) explains that if the appraisal comes in below the price, you may be able to use it to negotiate a lower price. An appraisal contingency keeps the choice to cancel open without risking your deposit.
Review of documents. This covers the seller's disclosures, the preliminary title report and, for a condo or townhome, the HOA documents. My article on reading an HOA budget can help with the condo side.
What Protection Does California Law Add on Its Own?
Some protection comes from the law itself, not the contract. California Civil Code Section 1102.3 says that if a required seller disclosure, or a material change to one, is delivered after you sign your offer, you can cancel within three days after delivery in person or five days after it's deposited in the mail, by written notice.
For homes built before 1978, the DRE notes that a federal rule requires the seller to give you 10 days to check for lead-based paint, unless you agree in writing to change or waive it.
What Happens if I Waive a Contingency?
Waiving a contingency can make your offer look cleaner. It also means you accept that risk.
- Waive inspection and you may buy a home with problems you didn't have the chance to find first.
- Waive appraisal and you may need to cover the gap in cash if the home appraises low.
- Waive the loan contingency and you could be in breach of contract if the loan falls through.
Your deposit is what's at stake. Civil Code Section 1675 explains that for a home of up to four units the buyer plans to live in, a liquidated damages amount of 3% of the price or less is presumed valid, unless the buyer shows it's unreasonable. In plain terms, if you back out without a contract reason after removing contingencies, you could lose your deposit.
Can I Keep Contingencies and Still Make a Strong Offer?
Often, yes. Instead of waiving, many buyers shorten the time frames.
- Inspect early. Book your inspector so the reports come back quickly.
- Get fully underwritten. Ask your lender to review your income and assets before you shop, not after.
- Know your cash cushion. If you can cover some appraisal gap, you can offer a partial appraisal protection and say so clearly.
My article on competing with cash buyers covers more ways to stand out without giving up every protection. If you do need to cancel, this article on backing out explains how to do it the right way.
Let's Start With a Conversation
If you're getting ready to write your first offer, I'd love to walk through each contingency with you so you know your choices before we submit. Call or text me at 714.366.8575 | DRE: 01397168, or contact me. Jeanette Nelson is a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas.
Frequently asked questions
How long do contingencies last in California?
The deadlines are set in your purchase contract and can be shortened or lengthened by agreement. Read each date before you sign, since missing one can change your rights.
Do contingencies go away on their own?
How a contingency is removed depends on your contract. Many California contracts call for a signed written removal. Ask your agent how yours works and track every date.
Is it ever safe to waive the inspection?
You can still inspect for information even with a shorter time frame. Waiving the right to cancel based on inspection means accepting the home's condition, so think it through with your agent and attorney first.
Can I remove a contingency early?
Yes, if you're comfortable with what it protects. You can also decline a seller's request to remove one early.