Buying or selling a home in Phoenix involves more than price and closing dates. The real decisions often happen around contingencies. If you understand what they do and how the timelines work in Maricopa County, you can protect your interests and move with confidence. In this guide, you’ll learn the key contingencies in the Arizona Residential Resale Purchase Contract, typical local timeframes, and smart ways to negotiate without adding risk. Let’s dive in.
What a contingency means in Arizona
A contingency is a contract term that lets you cancel or renegotiate if a specific condition is not met in time. The Arizona Association of REALTORS Residential Resale Purchase Contract includes common buyer protections like inspection, financing, appraisal, title review, HOA review, and seller disclosures. You can also add or modify contingencies with addenda.
In Greater Phoenix, these terms balance risk. Buyers gain time to verify condition, financing, and title. Sellers accept some timing uncertainty. You can negotiate the length and scope of each period. That is a major part of how offers win in competitive situations.
Inspection contingency: what you can inspect
The inspection contingency lets you check the home’s condition and decide whether to accept, request repairs or credits, or cancel based on the findings.
- Common scope: general home inspection, plus specialty checks like termites/pests, roof, HVAC, pool and pool barrier, sewer scope, foundation, or environmental tests.
- Typical Phoenix timeline: about 7 to 10 days from contract acceptance is common. In hot competition, you may see 3 to 5 days. In slower settings, 10 to 14 days is possible if negotiated.
To keep your options open, you must deliver a written notice of unsatisfactory items within the inspection period. If you miss the deadline, you may lose the right to cancel for inspection reasons.
Seller tip: A shorter inspection period can make an offer more attractive. Sharing recent maintenance records, disclosures, or a pre-list inspection can reduce buyer requests and keep the process smooth.
Financing contingency: loan approval timing
The financing contingency protects you if you cannot obtain a mortgage that matches the agreed terms.
- Common milestones: submit a complete loan application soon after acceptance, cooperate with underwriting, and meet the loan contingency removal date.
- Typical Phoenix timeline: about 21 to 30 days for conventional financing. VA or FHA loans can take longer due to added documentation and appraisal requirements.
Sellers often ask for a current pre-approval or proof of funds with the offer. A buyer with a strong mortgage commitment has more leverage and can sometimes shorten this contingency window. If your loan is denied after you remove the financing contingency, you may risk your earnest money based on the contract terms.
Appraisal contingency: when value comes in low
Lenders order an appraisal to confirm the value supports the contract price. If the appraisal is lower than your price and your contract allows, you can renegotiate, bring extra cash to close the gap, or cancel.
- Typical Phoenix timing: appraisals often return within 7 to 21 days, usually during your financing period.
- If low: options include a seller price reduction, buyer cash to cover the difference, a split of the gap, or termination if allowed by your appraisal terms.
In rising markets or areas with limited comparable sales, appraisal challenges can occur. Buyers willing to cover an appraisal gap or narrow the appraisal contingency may gain a competitive edge, but that increases risk.
Title and HOA review: what to look for
Title review confirms that you will receive clear, insurable title. You will review the title commitment, exceptions, liens, and any curative actions needed before closing.
- Typical Phoenix timeline: 5 to 10 days for title objection, depending on what is negotiated and when the title company delivers the commitment.
- Resolution: most issues are cured before closing. Serious defects that cannot be resolved can be grounds for termination per the contract.
If the property is in an HOA or a condo community, you will review the resale documents. This includes the CC&Rs, rules, budgets, assessments, and any pending litigation.
- Typical Phoenix timeline: 5 to 10 days for HOA document review, depending on how quickly the seller obtains the resale packet.
- Key flags: special assessments, rental restrictions, and large capital projects can affect costs and financing.
Seller disclosures and other clauses
Arizona sellers provide property disclosures that cover known material facts and defects. Federal lead-based paint disclosures apply to older homes. Buyers should review all disclosures within the inspection and document review periods.
Other contingencies you might see include a buyer’s home sale contingency or an insurance approval contingency. A home sale contingency is less common in a competitive market. Insurance issues are rare in most Phoenix neighborhoods, but unique exposures should be discussed early.
How the timelines unfold in Phoenix
Every contract is different, but here is a simple example of how contingency periods often play out in Maricopa County. Many local forms use calendar days, but confirm the terms in your specific contract.
Effective Date ── Inspection Period (≈7–10 days) ── Title/HOA Review (≈5–10 days)
\
── Financing/Application (submit quickly) ── Appraisal (≈7–21 days) ── Loan contingency removed (≈21–30 days)
\
── Closing (commonly 30–45 days total)
Common steps:
- Day 0 to 3: deliver earnest money and launch loan process.
- Day 0 to 7–10: inspection orders and reports, then written repair requests or notices.
- Day 0 to 10: title and HOA documents reviewed; submit objections within the period.
- Day 7 to 21: appraisal returns and any value gap negotiations begin.
- Day 21 to 30: financing contingency removal, then final prep for closing.
- Closing: often 30 to 45 days from acceptance. Cash closings can be faster.
Risk, leverage, and tradeoffs
Contingencies assign risk. Buyers gain protections and time. Sellers trade some certainty for attracting committed buyers. Shorter periods reduce seller risk but give buyers less time for due diligence. Waiving a contingency can make an offer stronger, but it increases the chance of losing earnest money if something goes wrong. The right balance depends on property condition, loan type, competition, and your comfort level.
Make your offer stronger without extra risk
If you want to compete without giving up key protections, consider these strategies:
- Show strong financing: include a current pre-approval and be ready to supply documents fast.
- Shorten the inspection period modestly: try 5 to 7 days instead of removing it.
- Limit inspection requests: agree to focus on major health, safety, or system issues, or set a reasonable repair credit cap.
- Prepare for appraisal outcomes: be ready to add to your down payment if needed, or set clear terms for how you will respond.
Seller moves to manage contingency risk
As a seller, you can keep the process on track by tightening timelines and improving transparency.
- Require a solid earnest money amount and quick deposit.
- Ask for proof of funds or pre-approval with the offer.
- Favor offers with defined and shorter contingency periods when all else is equal.
- Provide HOA resale documents and clear disclosures early to avoid delays.
Common Phoenix scenarios and smart responses
Here are frequent situations and ways to navigate them in Maricopa County:
- Low appraisal: negotiate a price adjustment, split the difference, or plan for the buyer to bring additional cash. If the contract allows, either party may cancel when no agreement is reached.
- Major inspection findings: options include repairs, a closing credit, or a price adjustment. If repairs require time, an escrow holdback can keep closing on schedule.
- Title issues late in the process: most are resolved before closing with help from the title company. If a serious defect remains, contract language may allow termination.
- HOA concerns: disclosures about special assessments or litigation can affect loan approval and monthly costs. Buyers often reassess or terminate if the burden is significant.
Quick checklists for buyers and sellers
Use these as simple guides to stay ahead of deadlines.
Buyer checklist
- Schedule your general inspection on day one and add specialty inspections as needed.
- Track every contingency date. Put reminders on your calendar for inspection, appraisal, and financing removal.
- Respond to lender document requests the same day to keep underwriting on time.
- Review title and HOA packets promptly and send any objections within your review period.
- Discuss plan B for appraisal gaps and repairs before you submit your offer.
Seller checklist
- Gather disclosures, maintenance records, and receipts before listing.
- Order the HOA resale packet early if possible.
- Evaluate offers on both price and terms, especially contingency lengths and buyer financial strength.
- Set clear expectations on repairs. Consider credits or limits to avoid last-minute disputes.
- Keep communication quick and documented so notices and removals are on record.
The bottom line for Phoenix buyers and sellers
Contingencies exist to protect you and give structure to the deal. In Maricopa County, the most common periods are about 7 to 10 days for inspections, 5 to 10 days for title and HOA review, 7 to 21 days for appraisals, and 21 to 30 days for financing removal. You can adjust any of these to fit your goals, property condition, and market competition. When you pair the right timelines with clear communication, you lower risk and improve your negotiating position.
If you want a plan tailored to your situation in the East Valley, connect with Bruce Adams for one-on-one guidance.
FAQs
What is an inspection contingency in Phoenix?
- It gives you time, typically 7 to 10 days, to inspect the home, request repairs or credits, or cancel if you deliver a written notice within the period.
How long does loan approval usually take in Maricopa County?
- Conventional financing often needs 21 to 30 days for underwriting and appraisal; VA or FHA loans may take longer due to added documentation.
What happens if the appraisal is lower than my contract price?
- You can renegotiate price, bring cash to cover the difference, split the gap, or cancel if your appraisal terms allow and no agreement is reached.
Are contingency deadlines calendar days or business days in Arizona?
- Many local contracts use calendar days, but you must confirm the exact language in your signed agreement.
How soon is earnest money due and what if a buyer backs out?
- Earnest money is typically due within a few days of acceptance; if a buyer defaults after removing contingencies, the seller may have remedies that can include keeping the deposit per contract terms.
How do HOA resale documents affect my purchase?
- They reveal rules, fees, budgets, and any assessments or litigation; you can object or cancel within your review period if the documents raise concerns.
Can I shorten or waive contingencies to win a bidding war?
- Yes, but it raises risk; consider shortening the inspection period, limiting repair requests, or preparing for appraisal gaps rather than waiving protections entirely.
What should a seller do to avoid delays in Phoenix?
- Provide complete disclosures and HOA documents early, require strong pre-approvals, and set clear, tight timelines for inspections and financing.
