Which of the following best describes a contingency in a real estate contract?

A contingency in a real estate contract is best described as a requirement for financing before the sale. This means that the contract includes specific stipulations that must be satisfied in order for the transaction to proceed. In the context of real estate, a financing contingency typically protects the buyer by allowing them to cancel the contract if they are unable to secure a mortgage or financing within a agreed-upon time frame.

This is a critical component of many real estate transactions, as it ensures that the buyer has the necessary funds to complete the purchase. When a buyer includes a financing contingency in their offer, they are making it clear that their commitment to follow through with the contract is conditional upon obtaining financing. This provides both parties with a clear understanding of the steps that need to be fulfilled before the deal can be finalized.

The other options describe different aspects of real estate transactions. While property inspections are important, they represent a different type of condition unrelated to the financing aspect. Postponing closing is not a standard contingency but rather an action that might be taken under certain circumstances. Similarly, modifying property use pertains to zoning or usage restrictions and does not directly define what a contingency is in the context of sales contracts.