Understanding Contingencies in Pennsylvania Offers

December 18, 2025

Writing an offer on a Lititz home and feeling unsure about the fine print? Contingencies can protect you, strengthen your offer, or cost you time and money if you miss a deadline. You want to compete in a popular Lancaster County market without risking your deposit or overpaying. In this guide, you’ll learn how the most common Pennsylvania contingencies work, what timelines to expect, and how to tailor your strategy for Lititz. Let’s dive in.

What contingencies mean in Pennsylvania

In Pennsylvania, most buyers and sellers use standard contracts from the Pennsylvania Association of Realtors. These forms include common protections like inspection, financing, appraisal, and title. Real estate attorneys often review and negotiate these terms. The exact language matters because contingency deadlines and remedies are enforceable as written.

Your earnest money deposit is handled by the contract. If a contingency is not satisfied and you cancel within the agreed window, you may be entitled to a refund. To keep that protection, track every deadline and get any changes in writing.

Sellers typically provide a Property Disclosure Statement, and homes built before 1978 require federal lead-based paint disclosures. In and around Lititz Borough, local rules on historic preservation and permitting can affect your plans and timeline for repairs or renovations. Verify local processes early in your diligence.

The big three contingencies

Financing contingency

Purpose: Lets you cancel without penalty if your lender does not approve your loan or issues an unsatisfactory commitment.
Typical timeline: About 21 to 30 days from contract for loan approval. A strong pre-approval before you offer can shorten this.
Negotiation effect: Shorter financing deadlines or removing the contingency can make your offer more competitive, but it increases your risk if financing falls through.
Lititz note: Local lenders who know Lancaster County can move faster on homes with wells, septic systems, or older utilities. A detailed pre-approval letter helps your offer stand out.

Appraisal contingency

Purpose: Protects you if the appraisal is lower than the purchase price. You can ask to renegotiate, bring extra cash, or cancel according to the contract terms.
Typical timeline: Appraisal is usually ordered soon after signing. Most buyers resolve appraisal issues within the financing window, often in 2 to 3 weeks.
Negotiation effect: Waiving the contingency can strengthen your offer, but you accept the risk of covering any shortfall.
Lititz note: Historic homes and unique properties may appraise differently from newer subdivisions. Talk with your lender and agent about valuation, and consider a private pre-offer valuation in very competitive situations.

Home inspection contingency

Purpose: Gives you time to inspect the home and negotiate repairs, credits, or termination.
Typical timeline: Commonly 7 to 14 days for inspections, plus 3 to 7 days to negotiate any repair requests.
Negotiation effect: Short inspection periods reduce flexibility. As-is or limited inspection offers can be attractive to sellers but carry more risk for you.
Lititz note: Many properties are older and may have original plumbing, knob-and-tube wiring, older roofs, or foundation and basement moisture concerns. Plan for thorough inspections of electrical, HVAC, roofing, chimney, and basement. If the home has a well or septic, add dedicated tests and inspections.

Specialty protections to consider

Septic, well, radon, lead, and termite

Purpose: These inspections address risks that a general inspection may not fully cover.
Timing: Often scheduled within the same window as your general inspection.
Negotiation: Major system repairs can slow closing or prompt credits. Credits can keep your timeline intact while addressing costs.
Lititz note: In parts of Lancaster County, private wells and septic systems are common. Pre-1978 homes require lead-based paint disclosures; you can request testing if you have concerns.

Title and survey

Purpose: Confirms marketable title and checks for liens, encroachments, and access issues. A survey can reveal boundary problems.
Timing: Title work runs during the contract period. Contracts usually include a cure period to resolve issues.
Negotiation: Unresolved defects can allow cancellation. Most sellers clear issues before closing, but surprises can delay timelines.
Lititz note: Watch for historic easements, municipal rights-of-way, or conservation restrictions. Use a local title company familiar with Lancaster County records.

HOA and condo documents

Purpose: Lets you review bylaws, budgets, assessments, and rules.
Timing: Typically 3 to 10 days to review and object after receiving the documents.
Negotiation: If documents reveal unexpected restrictions or fees, you may renegotiate or cancel within the review window.
Lititz note: Some associations limit rentals or exterior changes. Confirm rules before you commit.

Sale of your current home

Purpose: Makes your purchase contingent on selling or settling your current home.
Timing: Highly negotiable. Sellers often prefer an escape or bump clause that lets them continue marketing the home.
Negotiation: This contingency weakens your offer in competitive markets. It can work with price adjustments or stronger terms in slower markets.
Lititz note: If you need proceeds from a nearby sale, consider bridge financing or aligning closing dates to reduce this contingency period.

As-is and limited inspections

Purpose: As-is sales increase certainty for sellers. You can still inspect, but the seller may refuse repairs.
Negotiation: As-is terms are sometimes paired with price concessions. If you agree to as-is, focus on safety and structural carve-outs so you can walk away if you discover major issues.

Timeline from offer to closing

Every contract is different, but here is a typical sequence that fits many Lititz transactions:

Day 0: Contract signed and earnest money deposited per the agreement.
Days 1 to 3: You schedule inspections, the lender opens your file and orders the appraisal application, and your attorney or title company starts the title search.
Days 3 to 10: Inspections are completed. You submit repair requests or objections. The seller responds within the timeframe in the contract.
Days 10 to 30: Lender completes underwriting and appraisal. Title clears most issues. Financing contingency is satisfied or waived.
Days 30 to 60: Any remaining items are cured. You close when financing and title are cleared. Actual dates vary by contract.

How contingencies work together

Financing and appraisal typically move together, since lenders fold the appraisal into underwriting. Inspection and title work usually run in parallel with financing. Specialty inspections like septic and well should be ordered immediately if needed.

All deadlines point toward one closing date. Missing a deadline can waive protections or trigger default remedies. Keep everything in writing and confirm extensions before a clock runs out.

Smart negotiation for Lititz buyers

First-time buyers

Keep key protections, especially financing and inspections.
Use a strong pre-approval letter and offer a meaningful earnest deposit.
Shorten timelines modestly if your lender and inspectors can meet them.
Ask for credits rather than seller repairs to keep the closing on track.

Move-up buyers

If you need sale proceeds, negotiate a sale contingency with a firm timeline and a clear escape clause for the seller.
Consider bridge or piggyback financing to reduce or remove the sale contingency.
Show strength by addressing potential appraisal gaps with added down payment if your budget allows.

Middle-ground options sellers notice

Set an inspection repair cap so both sides know the ceiling on seller-paid repairs.
Use as-is with inspection rights limited to structural or safety issues. This reduces seller worry but still protects you from major surprises.

Local Lititz checks that affect contingencies

Age and character: Many homes are older or historic, which can affect inspection findings, valuation, and repair costs.
Utilities: Confirm municipal water and sewer versus private well and septic. Add the right inspections if systems are private.
Historic district and permits: If the home is in a historic or conservation area, exterior changes may require specific approvals. Plan timelines accordingly.
Flood and insurance: If a property is near streams or low-lying areas, check flood designations and potential insurance requirements.
Taxes and boundaries: Verify school district boundaries and current tax assessments for accurate closing cost estimates.

Buyer checklist to protect your deposit

Get a written pre-approval before making an offer.
Confirm early whether the home has well, septic, HOA, or historic status.
Order specialty inspections immediately if needed.
Read seller disclosures closely, including lead-based paint disclosures for pre-1978 homes.
Calendar every contingency date and share it with your lender, inspector, and title company.
Put waivers, extensions, and repair agreements in writing. Have an attorney review changes before you remove protections.

Ready to move in Lititz? We can help

You deserve a plan that protects your deposit and keeps your offer competitive. Our team pairs local relationships with full-service coordination, from vetted lenders and inspectors to skilled negotiation and closing management. If you want clear timelines, smart contingency strategy, and a smoother path to the keys, talk with the David A Wissler Team of Coldwell Banker Realty. We are ready to guide you step by step.

FAQs

What is a contingency in a Pennsylvania home offer?

A contingency is a contract condition that must be met for the sale to proceed, such as financing, appraisal, inspection, title, or document review.

How strict are contingency deadlines in PA?

Deadlines are binding contract terms, and missing one can waive your rights, so request extensions in writing before a deadline expires.

What happens if my Lititz appraisal comes in low?

You can request a price adjustment, bring extra cash to cover the gap, or cancel if your appraisal contingency allows it and you act within the deadline.

Should I waive the inspection to win a Lititz bidding war?

Waiving inspection increases risk; consider a shorter inspection window or limit requests to major systems and safety issues instead of giving it up entirely.

Is my earnest money refundable if financing fails?

If your financing contingency is properly in place and you cancel within the set timeframe, you can typically recover your earnest money under the contract.