Winning a home in San Anselmo can move fast. The pressure to shorten or waive contingencies is real, and the stakes feel high. You want to be competitive without taking on surprises that could cost you thousands. In this guide, you’ll learn what each contingency does, typical Marin timelines, and smart ways to stay protected while still writing a strong offer. Let’s dive in.
What a contingency is
A contingency is a condition in your purchase contract that must be met or affirmatively removed before you are required to close. If a contingency is not satisfied and you have not removed it in writing, you can usually cancel and recover your deposit according to contract terms. In California, these protections are built into the standard purchase forms and work alongside required seller disclosures.
Contingencies are negotiated, including the time allowed to complete them. Removal must be in writing. If you waive a contingency and later cancel without a contract right, you risk losing your earnest money.
Key contingencies to know
Inspection contingency
- Purpose: Gives you time to hire inspectors, review findings, request repairs or credits, or cancel within the period.
- Typical Marin timeline: 7 to 14 days. In competitive cases, some buyers shorten to 3 to 7 days.
- San Anselmo tips: Many homes were built between the early 1900s and 1960s. Consider specialists for foundation, drainage, retaining walls, seismic retrofit, roof, chimney, and, where applicable, septic or sewer scope.
Financing or loan contingency
- Purpose: Protects you if you cannot obtain the specified loan approval despite good‑faith efforts.
- Typical Marin timeline: 14 to 21 days, sometimes shorter with strong pre‑underwriting.
- San Anselmo tips: Larger loan sizes are common. A full underwritten approval helps you shorten timelines without adding risk.
Appraisal contingency
- Purpose: Lets you renegotiate or cancel if the appraisal comes in below the contract price and affects your loan.
- Typical Marin timing: Often runs with the loan contingency, generally resolved within 7 to 14 days after the appraisal report.
- San Anselmo tips: In higher price points, appraisal gaps can occur. Some buyers use a capped appraisal‑gap contribution to stay competitive, which raises risk, so set a firm dollar cap you can cover.
Title review contingency
- Purpose: Allows you to review the preliminary title report, understand easements or liens, request cures, or cancel.
- Typical timeline: 5 to 10 days after receiving the title report.
- San Anselmo tips: Older parcels can carry legacy easements. Ask questions early if access or utility easements appear.
Pest inspection contingency
- Purpose: Identifies wood‑destroying organisms and moisture issues such as termites and dry rot.
- Typical timeline: Often within the first 7 to 10 days.
- San Anselmo tips: Wooded and coastal‑influenced areas can have higher moisture and pest activity. Budget for treatment or repairs if needed.
HOA document review contingency
- Purpose: Gives you time to review CC&Rs, bylaws, budgets, reserves, minutes, rules, and any special assessments.
- Typical timeline: 5 to 10 days after you receive the full package.
- San Anselmo tips: HOA financial health affects monthly costs and sometimes financing. Read minutes for upcoming projects or restrictions.
Seller disclosures and natural hazards
- Purpose: Ensures you receive required disclosures, including the Transfer Disclosure Statement and Natural Hazard Disclosure, and provides time to review.
- Typical timeline: Often tied to your inspection period or a separate 3 to 7 day review window.
- San Anselmo tips: Pay close attention to wildfire, flood, and landslide designations. Confirm any unpermitted work that is disclosed.
Sale of your home contingency
- Purpose: Allows time to sell your current property before you are fully bound to buy.
- Typical timeline: Highly variable, often 14 to 60 days.
- San Anselmo tips: In competitive settings, this is less attractive to sellers. Strengthen your offer with clear sale milestones or flexible terms if you need this protection.
Insurance or hazard contingency
- Purpose: Lets you cancel if you cannot obtain acceptable homeowners or hazard insurance.
- Typical timing: Often aligned with loan timelines. Confirm early.
- San Anselmo tips: Wildfire exposure can affect price and availability. Get quotes promptly, especially for hillside or wildland‑adjacent homes.
How timelines and removal work
Once your offer is accepted, contingency periods begin according to the contract. Most start at acceptance or upon delivery of specific documents. Typical escrow length in Marin is 30 to 45 days, depending on financing and negotiations.
You must remove contingencies in writing. California forms allow for full or partial removal. If you need more time, your agent can request a written extension. Never let a deadline pass without action, since some contracts allow the seller to cancel if contingencies are not removed on time.
Keep, shorten, or waive?
Contingencies make your offer safer. Shortening or waiving them can make your offer more competitive. The right choice depends on the market, the property, and your comfort with risk.
Consider:
- Market heat: Multiple‑offer situations often push shorter periods.
- Property age and complexity: Older homes or hillside lots benefit from thorough inspections.
- Financing confidence: Full underwriting supports a shorter loan contingency.
- Insurance: Confirm insurability before removing this protection in wildfire or flood zones.
- Financial cushion: If you waive protections, be prepared to absorb repairs or an appraisal shortfall.
Smart risk management
If you want to compete while staying protected, use these tactics:
- Shorten timelines instead of waiving entirely, for example a 5 to 7 day inspection.
- Get full loan underwriting before you write the offer.
- If needed, use a capped appraisal‑gap clause that limits your exposure to a set dollar amount.
- Make a strong, reasonable earnest money deposit without overexposing funds.
- Limit any inspection waiver by reserving the right to cancel for major structural or safety issues.
- Accept as‑is condition while still reserving the right to cancel within your inspection period.
San Anselmo specifics to watch
- Older housing stock: Verify permit history and look for unpermitted additions or past work. Consider contractor or structural review if something looks off.
- Hillside, drainage, and soil: Retaining walls and drainage patterns matter. Order specialized inspections where appropriate.
- Natural hazards: Review wildfire, flood, and landslide designations in the Natural Hazard Disclosure. Confirm insurance availability and estimated premium early.
- Sewer vs. septic: Not every property is on sewer. If septic is present, schedule a septic inspection and confirm transfer requirements.
- HOA considerations: For condos and townhomes, study reserves, rules, and meeting minutes for upcoming assessments or restrictions.
What to do once you are in escrow
- Day 0 to 1: Open escrow, send deposit, order title, and schedule all inspections.
- Day 1 to 3: Confirm insurance quotes and coverage options. Order appraisal if financing.
- Day 3 to 7: Complete general inspection, pest inspection, and any needed specialists. Begin review of disclosures and title.
- Day 7 to 14: Finalize repair requests or credits. Receive appraisal. Continue loan underwriting.
- Day 14 to 21: Remove inspection and disclosure contingencies when satisfied. Target loan and appraisal removal as soon as underwriting clears.
Timelines vary by property and market. The goal is to compress steps responsibly, not skip steps that protect you.
How your agent helps
A skilled local agent guides the strategy and the steps. Here is how a hands‑on approach protects you:
- Tailored timelines: Recommend contingency periods that fit current Marin conditions and the property type.
- Lender strength: Help you secure full underwriting so your loan timeline is realistic and tight.
- Inspection coordination: Line up inspectors immediately and add specialists when needed, such as foundation, roof, chimney, sewer, septic, or soils.
- Permit and document review: Check available records and flag concerns early.
- Negotiation: Use inspection findings to pursue credits or repairs, or to confirm as‑is value when making a case to the seller.
- Clear documentation: Draft precise contingency removal language and track every deadline.
Common mistakes to avoid
- Waiving inspection on an older or hillside home without prior reports.
- Relying on a soft preapproval to justify a short loan contingency.
- Ignoring insurance quotes until late in escrow.
- Letting deadlines pass without written extensions or removals.
- Overcommitting on an appraisal gap without cash reserves.
When you balance speed with diligence, you protect your deposit and your long‑term costs while staying competitive.
Ready to craft a safe, strategic offer in San Anselmo? Connect with Kris Klein for tailored guidance, fast inspection coordination, and negotiation that protects your bottom line.
FAQs
What is a home purchase contingency in California?
- A contingency is a contract condition that must be satisfied or removed in writing before you are required to close, giving you a right to cancel if the condition is not met.
Which contingencies are most important for San Anselmo buyers?
- Inspection, financing, appraisal if you are getting a loan, title review, and disclosure review are core protections, with HOA review and insurance checks when applicable.
How long should I set for inspection in Marin?
- Typical inspection periods run 7 to 14 days, though some buyers use 3 to 7 days in competitive situations if inspectors can be scheduled immediately.
Can I waive contingencies and still get financing?
- Yes, but waiving the loan contingency is risky because you lose the standard exit if underwriting is denied; many buyers keep the loan contingency and adjust others.
What is an appraisal gap clause?
- It is an agreement to cover a shortfall if the appraisal comes in below the price, usually capped at a set dollar amount to limit your risk.
How do I handle unpermitted work found during inspection?
- You can request that the seller address it, negotiate a credit or price reduction, or cancel if the issue is material to safety or value and your contingency allows it.
What local risks should I check in San Anselmo?
- Review wildfire, flood, and landslide exposure in disclosures, confirm insurance availability and cost, and consider specialized inspections for drainage and retaining walls.
