Title Contingency

A contractual term that allows a buyer to inspect and approve the Preliminary Title Report before the contract becomes binding. The buyer doesn't have the right to simply rescind the contract, though. First, the seller is given an opportunity to fix the defect. If the seller can do so prior to closing, the contract remains binding. If the seller cannot do so, then the contract terminates and the buyer gets their earnest money back.

Want to learn more? Check out my great blog post on how to read and understand a title report.