Big Changes to Contingencies in the Sales Agreement for 2026 ✍️

We see small contract updates every year, but this round brought a few larger shifts that everyone should pay attention to. Let’s walk through the three, I believe, that matter most. Let’s dive in! 👨‍💻

What changed.

Recent contract updates clarified how several key contingencies work — most notably the appraisal, loan, and suitability contingencies. Each now has more defined timelines, clearer notice requirements, and a more structured process for contingency failures. The intent isn’t to remove protections, but to clarify when a buyer must act and how the transaction proceeds or terminates.

Why the change?

These updates were largely driven by real-world confusion and disputes in past transactions — especially around missed deadlines, unclear notices, and assumptions that contingencies were still “open” when they weren’t. By tightening the language and separating contingencies more clearly (for example, distinguishing appraisal issues from loan approval issues), the forms aim to reduce gray areas and reduce surprises for both buyers and sellers.

How it impacts a transaction.

In practice, this means timelines matter more than ever. Buyers need to be proactive and responsive when an appraisal comes in low, when loan approval is delayed, or when suitability concerns arise. Sellers benefit from clearer certainty about when a deal is solid versus still conditional. Overall, the changes encourage earlier communication, faster decision-making, and a more predictable path to closing, which is usually a win for everyone involved.