Trying to buy your next home in San Mateo before your current one sells can feel like a juggling act. You want to move once, lock a fair price, and protect your deposit — without losing the home you love. Home sale contingencies can help you do that, but the details matter in a competitive Peninsula market.
In this guide, you’ll learn how home sale contingencies work in California, what San Mateo sellers expect, and practical strategies that help buyers and sellers balance risk with results. Let’s dive in.
What a home sale contingency is
A home sale contingency lets you purchase a property only if your current home sells, and often closes, by a set date. If your sale does not happen in time, you can cancel under the contingency terms without losing your deposit, as long as you follow the contract.
In San Mateo, this type of contingency is common enough to be understood, but it is not always attractive to sellers. The stronger your plan and timeline, the better your odds of getting accepted.
How contingencies work in California
Standard CAR forms and timelines
Most residential deals use California Association of REALTORS forms. These forms include built‑in contingency language and addenda such as the Sale of Buyer’s Property Contingency, loan and appraisal contingencies, and inspection contingencies. Your agreement will specify the contingency period and what must happen before you remove it in writing.
Removal, waiver, and consequences
A contingency only protects you if it is in the signed contract and still active. You either remove it in writing when satisfied or allow it to lapse. If you remove or waive a contingency and later cannot perform, you may put your earnest money at risk, depending on the contract. Keep communication and deadlines in writing so escrow and both parties stay aligned.
Disclosures still apply
Sellers must provide state‑required disclosures like the Transfer Disclosure Statement under California Civil Code §1102 et seq. These disclosures are separate from inspection contingencies but often affect negotiations during the contingency period.
When a home sale contingency makes sense in San Mateo
- You need proceeds from your current home to fund your down payment.
- You want to move once and avoid interim housing.
- Your home is already listed or in escrow and you can show progress to the seller.
- You can agree to short, specific timelines that fit the seller’s goals.
In low‑inventory periods when multiple offers are common, sellers prefer fewer contingencies. If you need this protection, you will want to make the terms tight and the rest of your offer as strong as possible.
Buyer pros and cons
Benefits for buyers
- Protects your deposit if your home does not sell by the deadline.
- Reduces the risk of carrying two mortgages.
- Gives you time to coordinate closings and movers.
Risks for buyers
- The seller may continue to market the home and accept a backup offer.
- A kick‑out clause can force a quick decision if another buyer appears.
- Short timelines add pressure to price and market your home aggressively.
Seller pros and cons
Benefits for sellers
- You may capture a motivated buyer willing to offer a strong price.
- You can keep marketing the property and accept a backup offer for protection.
- You can negotiate shorter windows and clear proof of the buyer’s sale progress.
Risks for sellers
- Time lost if the buyer’s sale falls through.
- Possible delay to your own purchase plans and carrying costs.
- Added coordination if timelines change late in escrow.
Key terms to negotiate
Kick‑out clause
A kick‑out clause allows you to keep marketing the property. If you receive another acceptable offer, you give the contingent buyer a short window, often 24 to 72 hours, to remove their home sale contingency or step aside. This is a common compromise in San Mateo and helps balance buyer protection with seller certainty.
Deadline windows
Set clear, reasonable dates for milestones. Examples include the date the buyer’s home must enter escrow and the final date by which it must close. Shorter windows are more competitive for buyers and reduce uncertainty for sellers.
Proof of progress
Buyers can improve credibility by providing a signed listing agreement, MLS live date, marketing plan, or proof that their home is already in escrow. Sellers should request documentation and updates during the contingency period.
Earnest money and terms
A larger earnest money deposit, higher price, or seller‑friendly terms like a limited repair request or rent‑back can offset the risk of accepting a contingent offer. Keep the deposit terms consistent with the contingency so both sides understand when it is refundable.
Typical timelines in the Peninsula
Every deal is negotiable, but many San Mateo contracts follow these broad ranges:
- Inspection contingency: commonly 7 to 17 days.
- Loan contingency: commonly 17 to 21 days, sometimes up to 30 for complex loans.
- Home sale contingency: often a defined calendar date, such as 21 to 60 days, based on listing status and lender expectations.
- Escrow period: typically 30 to 45 days from acceptance, and sometimes longer if tied to a home sale contingency.
Shorter timelines are more competitive, but make sure they are realistic based on your listing, lender, and escrow readiness.
Alternatives if you cannot use a home sale contingency
- Bridge financing or a HELOC: Short‑term funds to buy first, then sell. Understand costs and lender requirements.
- Tight coordination with your buyer: If your home is already in escrow, make the contingency dependent on closing rather than listing or offer acceptance alone.
- Seller‑friendly terms: Consider larger earnest money, a limited inspection request, or a rent‑back to help the seller’s timing.
These options carry risks and costs. Pair them with a strong preapproval and a clear plan to manage worst‑case scenarios.
How to strengthen a contingent offer
- Provide proof your home is ready or already in escrow. Include the listing agreement, live MLS status, or accepted offer details as allowed.
- Keep timelines tight and specific. Offer milestone dates and be ready to shorten them if the seller counters.
- Accept a kick‑out clause with a fast response window if you can move quickly.
- Offer a larger earnest money deposit and make other terms simple and clean.
- Pair with a full underwriting preapproval and a plan for appraisal gaps.
How sellers can safely accept one
- Ask for documentation of the buyer’s sale progress and loan preapproval.
- Shorten contingency windows and include a kick‑out clause.
- Keep marketing the property and solicit backup offers in case timelines slip.
- Consider a price premium or other concessions in exchange for accepting the contingency.
- Track milestones in writing and set reminders for removal dates.
San Mateo market considerations
San Mateo and the Peninsula often see strong demand with limited inventory. In these conditions, sellers favor certainty. That means offers with home sale contingencies will be evaluated closely and usually need tight windows and strong proof.
Inspection expectations are also shaped by local housing stock. Many properties are older, and buyers often order general, pest, roof, or sewer inspections. Earthquake retrofits and moisture findings can be common topics. If you plan to keep an inspection contingency short, review available disclosures early and be ready to focus on health, safety, and major systems.
Appraisals can be another pressure point when accepted prices outpace comparable sales. Even with an appraisal contingency, outline how you will handle any gap so the seller understands your plan to close.
Risk management and smooth closings
- Put every date in writing and confirm receipt with escrow.
- Remove or waive contingencies only when you are fully satisfied.
- If you need more time, request extensions in writing before deadlines.
- Make sure the purchase contract clearly explains what happens to the earnest money if a contingency is not met.
Good communication keeps deals on track, especially when two escrows need to close in sequence.
Next steps
If you are buying and selling in San Mateo, the structure of your contingency can make or break your move. Tight timelines, strong documentation, and the right protections help both sides get to closing with confidence.
Want a tailored game plan for your situation? Request a Personalized Market Consultation with The Gevertz Group.
FAQs
Are home sale contingencies allowed in California?
- Yes. They are common contractual provisions using standard California forms. Acceptance depends on the seller and current market conditions.
What is a kick‑out clause in San Mateo transactions?
- It lets the seller keep marketing the home. If a better offer appears, the contingent buyer gets a short window, often 24 to 72 hours, to remove the contingency or withdraw.
How can I make a contingent offer more attractive to a seller?
- Provide proof your home is listed or in escrow, shorten contingency windows, offer a larger earnest money deposit, or add seller‑friendly terms like a limited repair request or rent‑back.
What are typical contingency timelines on the Peninsula?
- Inspection windows are commonly 7 to 17 days, loan contingencies 17 to 21 days, and home sale contingencies are set to a specific date, often 21 to 60 days depending on your sale progress.
What happens if I waive contingencies and cannot close?
- You assume greater financial risk. Depending on the contract, you could lose your earnest money or be in default. Only waive protections if you fully understand the risk.
Should a San Mateo seller accept a contingent offer?
- It depends on your priorities. If price is strong and the buyer’s contingency is tight, with a kick‑out clause and backup offer in place, it can be a reasonable path.
Do disclosures change if a contingency is involved?
- No. Sellers still must provide required California disclosures, including the Transfer Disclosure Statement, and buyers still have the right to review them during the contingency period.
