Home Contingencies Explained for San Rafael Buyers

Trying to decide which contingencies to keep in a San Rafael offer? You want to protect your deposit and still stand out in a competitive market. In this guide, you will learn what each contingency does, typical timelines in Marin, the risks of waiving protections, and smart ways to stay competitive without taking on unnecessary risk. Let’s dive in.

Why contingencies matter in San Rafael

San Rafael and greater Marin often see higher prices and periods of low inventory. That means sellers can be selective, especially in multiple-offer situations. Shorter contingency periods and strong financial proof can strengthen your offer, but contingencies still protect your deposit and give you a safe exit if something important changes.

Your goal is to balance protection with competitiveness. With the right plan, you can keep key safeguards while still presenting a clean, confident offer.

Core contingencies and local norms

Inspection contingency

The inspection contingency lets you hire a professional to evaluate the home and request repairs or credits if significant issues appear. In California, common windows run 7 to 17 days. In competitive San Rafael offers, you may see 5 to 10 days, so book inspectors quickly and leave room for specialists if needed.

If the deadline passes without removal, you typically lose the contractual right to cancel based on inspection findings. Waiving entirely can leave you responsible for costly latent issues such as roof, foundation, drainage, or mold. Safer options include a shorter 5 to 7 day period, limiting review to major systems, or arranging a pre-offer inspection when access allows.

Loan or financing contingency

This protects you if your lender cannot approve the loan in time. Many California contracts use 17 to 21 days. In stronger offers, buyers sometimes shorten to 7 to 14 days with a lender that can move quickly and with pre-underwritten approval.

Loan approval often depends on the appraisal. If the appraisal is low, the lender may not fund unless you cover the gap or the price changes. Waiving the loan contingency increases the risk of losing your earnest money if financing falls through. A strong approach is to secure underwriter-reviewed approval, shorten the period thoughtfully, and coordinate timelines closely with your lender.

Appraisal contingency and gap coverage

An appraisal contingency lets you cancel or renegotiate if value comes in below the price. It often mirrors the loan timeline. In competitive local offers, some buyers use an appraisal gap clause that commits to cover a set amount above the appraised value.

If you waive appraisal protection and the value is low, you must bring cash to cover the shortfall or the loan may not fund. Consider keeping a short appraisal contingency or using a defined gap amount that fits your reserves.

Title contingency

Title review confirms there are no liens, encroachments, or problematic easements you cannot accept. Review periods are often 5 to 10 days. In Marin, older parcels may include historical easements or restrictions, so read reports closely and confirm any encroachments or CC&Rs.

If a defect is found, sellers commonly cure it before closing or offer a credit. If it cannot be resolved within the terms of the contract, you can usually terminate under the title contingency.

HOA and condo document review

For condos or homes in common-interest communities, you will review CC&Rs, budgets, insurance, special assessments, and rules. Timeframes of 3 to 10 days are common in California. Shortening the review may help in a competitive offer, but be sure you understand financial health, upcoming assessments, and rental policies that can affect resale or financing.

Pest (termite) inspection

A pest inspection checks for wood-destroying organisms and related structural damage. It often runs in parallel with the general inspection and may share the same 7 to 17 day window. In Marin’s climate, termite issues can occur, and sellers sometimes address active infestations before close.

Septic, sewer, well, and permits

These contingencies verify system condition, utility connections, water quality, and permit history. Timelines vary based on scheduling and the need for specialists. Most San Rafael city properties use municipal sewer, but some parcels outside city limits may have septic systems. Confirm specifics with Marin County Environmental Health or Public Works if applicable.

Sale of buyer’s property contingency

This allows your purchase to depend on selling your current home. In San Rafael, sellers often resist this unless conditions warrant flexibility. If accepted, offers typically include strict deadlines with proof your home is listed or in escrow.

Alternatives include a bridge loan, a rent-back to the seller, or temporary financing that lets you write a non-contingent offer.

Lead-based paint (pre-1978 homes)

Federal law requires disclosures for homes built before 1978 and provides up to 10 days for a lead inspection. Many Marin homes pre-date 1978, so expect this language and plan accordingly during your inspection window.

Compete without excess risk

You can improve your odds without giving up core protections. Consider these practical approaches:

• Shorten, do not waive. Try a 5 to 7 day inspection and a 7 to 14 day loan period if your lender is fast.
• Show strength. Provide full proof of funds and a pre-underwritten approval.
• Use an appraisal gap. Commit a defined dollar amount rather than waiving protection entirely.
• Make an as-is offer with limits. You can review disclosures and restrict inspections to major systems or safety items, with language that is clear in the contract.

Contract mechanics to know

• Start and expiration. Many contingency clocks start at offer acceptance, but some begin upon delivery of seller disclosures. Confirm the exact trigger in your contract.
• Removal of contingency. You must deliver a signed notice by the deadline to keep deposit protections and move forward.
• Termination vs cure. Some contingencies allow the seller time to fix issues. Others permit you to cancel once a problem is identified.
• Earnest money. If you cancel properly under a contingency, your deposit is typically returned. If you cancel after a contingency expires, you may be in default and risk losing the deposit.
• As-is vs inspections. As-is often means the seller will not make repairs. It does not always bar you from reviewing disclosures or doing limited inspections if that is written into the agreement.

Your offer checklist

Use this quick list to stay organized when you write your offer:

• Contingencies and days for each (inspection, loan, appraisal, title, HOA, pest, septic if needed).
• Who pays for specific inspections and HOA documents.
• Earnest money terms and what happens if a contingency is exercised.
• Lender contact details and status (pre-approval or pre-underwritten).
• Any appraisal gap language, with clear amounts and mechanics.
• Calendar of deadlines and instructions for delivering contingency removals by email or through escrow per contract.
• Any requested seller timeline preferences such as a fast close or rent-back.

San Rafael strategy snapshot

• Expect sellers to favor shorter contingency periods when multiple offers are likely. A strong, well-documented loan file can shorten timelines responsibly.
• Build inspection access into your plan so you can schedule general and specialist inspections quickly.
• If you need to keep standard protections, consider larger earnest money and better proof of funds to offset longer timelines.

Ready to tailor a plan to your situation? Reach out to the local team that understands Marin contracts, timelines, and negotiation norms. Connect with Falla Associates to map your best path in San Rafael.

FAQs

What is an inspection contingency and how long does it last in San Rafael?

• It gives you time to inspect the home and request repairs or cancel if major issues arise. Typical California windows are 7 to 17 days; competitive local offers sometimes use 5 to 10 days.

How does an appraisal contingency protect me if value comes in low?

• It lets you renegotiate or cancel if the appraisal is below price. Without it, you may need extra cash to cover the gap or the loan may not fund.

What is the difference between pre-approval and pre-underwritten approval?

• Pre-approval is an initial review. Pre-underwritten means an underwriter has reviewed your file, which can support shorter loan contingencies and a stronger offer.

What happens if my contingency deadline passes and I want to cancel?

• If a contingency has expired, your ability to cancel and keep your deposit is limited. You may be in breach and risk losing your earnest money.

Are sellers in San Rafael open to offers contingent on selling my current home?

• Often not, unless the market supports more flexibility. If considered, expect strict timelines and proof that your home is listed or in escrow.