What Is a Contingency Release in NH Real Estate?

🏡 What Is a Contingency Release in NH Real Estate?

In New Hampshire real estate, contingencies protect buyers and sellers by giving them the ability to back out of a contract under certain conditions. But what happens when those conditions have been satisfied — or a buyer wants to move forward regardless?

That’s when a contingency release comes into play.

Here’s what NH homebuyers and sellers should know.

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What Is a Contingency Release?

A contingency release is a written acknowledgment that a buyer is officially removing one or more contingencies from the purchase contract. Once released, that condition can no longer be used to cancel the deal without risking loss of earnest money.

Common NH contingencies that may require a release include:

✔ Home inspection

✔ Appraisal

✔ Financing

✔ Title review

✔ Sale of buyer’s current home

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Why Do Buyers Need to Release Contingencies?

In NH real estate, contingencies usually expire on a certain date. To keep the transaction moving smoothly — or to make their offer more competitive — a buyer may choose to release them sooner.

Reasons buyers release contingencies:

✔ Their inspection came back clean

✔ They secured final loan approval

✔ The appraisal matched or exceeded the contract price

✔ They want to strengthen their offer in a multiple-offer situation

⚠️ Important: After releasing the contingency, the buyer is generally locked into completing the purchase unless another active contingency gives them an exit.

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Why Sellers Care About Contingency Releases

For sellers in Plymouth, Campton, Thornton, and surrounding Central NH towns, contingency releases provide peace of mind.

A released contingency means:

✔ Less risk of the deal falling apart

✔ A clearer timeline toward closing

✔ More confidence in making their own moving plans

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When Should a Contingency Not Be Released?

Buyers should avoid releasing a contingency if they:

❌ Haven’t received inspection results yet

❌ Are still waiting on financing or underwriting

❌ Don’t have a clear title report

❌ Aren’t fully comfortable with the property’s condition

Always consult with your agent before releasing any contingency — it’s a major commitment.

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Bottom Line

A contingency release is a key milestone in NH real estate transactions. It signals that the buyer is confident and ready to move forward, giving sellers reassurance that the deal is solid.

Used properly, it helps keep the closing process on track for both sides.

Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com