Contingent Offer in NYC: The 1987 Case Behind the Rules
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A contingent offer includes conditions that the buyer needs to meet before closing, disclosed upfront rather than left as a surprise, covering financing, appraisal, and inspection. NYC also has the Hubbard clause, named after a 1987 case, which requires you to sell your current home first. A non-contingent offer, often all-cash, has none of these.
We represent NYC buyers, and this is one of the first concepts we walk through before writing any offer. Knowing which contingencies you actually need, versus which ones just weaken your bid, changes how a seller reads your offer.
Conditions attached, said out loud instead of hidden, is the whole idea.
What a contingent offer actually means
A contingent offer is an offer in which the buyer states upfront the conditions that must be satisfied before the deal closes. A mortgage contingency and an appraisal contingency are the two most common, alongside a home inspection contingency. Each gives the buyer a defined way to renegotiate or walk away if that specific condition isn’t met, a structure Chase’s own explainer on contingent offers breaks down in the same terms.
Our pillar guide to negotiating in NYC covers where a contingent offer fits among the other tools buyers use to structure a competitive bid.
Non-contingent offer meaning, and why sellers prefer it
An offer with nothing left to negotiate about later is what a non-contingent offer really is. Often that means all-cash, though a financed buyer can also submit one by agreeing to close regardless of what an appraisal or inspection turns up.
Sellers generally favor these offers because there’s less that can derail the deal after signing. The tradeoff sits entirely with the buyer: without contingencies, you’re contractually obligated to close even if the financing, appraisal, or inspection goes badly.
The Hubbard contingency, NYC’s home-sale clause
The buyer’s old home has to sell before the new one is truly theirs, and that’s exactly what a Hubbard clause ties together. Named after a 1987 New York case, it lets a buyer make an offer contingent on selling their current home. The buyer gets a window to close that sale before the new deal is finalized.
| Hubbard clause offer | Non-contingent offer | |
|---|---|---|
| Buyer needs | To sell current home first | Nothing else to sell |
| Seller can | Keep marketing the listing | Stop showing once accepted |
| If a better offer arrives | Buyer gets a notice window to remove the contingency | Not applicable |
| Seller risk | Real, deal can fall through | Minimal |
It’s one of the least attractive contingencies from a seller’s side. The seller usually keeps the listing active and can accept a better offer, giving the original buyer a set window to drop the contingency or step aside. Buyers who’d rather avoid this entirely sometimes use a bridge loan instead, buying the new place before their old one sells.
What does contingent mean on a listing
Still for sale, technically, but not really available, is what a “Contingent” MLS status usually signals. It means a seller has accepted an offer with conditions attached, and the deal isn’t final yet. Depending on the listing’s specific terms, a seller may still show the home and accept backup offers. Some use a kick-out clause, which lets them notify the current buyer if a stronger offer comes in.
In New York, none of this is binding on the seller until attorneys have exchanged and countersigned the actual contract. An online listing status doesn’t change that.
Make a contingent offer competitive
The parts of a contingent offer you can actually strengthen matter more than which contingencies you include. A larger deposit, a flexible closing date, and a strong pre-approval all signal seriousness, even with contingencies in place.
If you’re competing against a contingent offer yourself, an all-cash or non-contingent bid at a comparable price often wins outright. It removes the very uncertainty a seller is trying to avoid.
What we tell sellers about a contingent offer
Not automatically the wrong choice, just the riskier one, is how we frame this when selling to clients. A contingent offer with a strong buyer and a reasonable timeline can be worth accepting. That’s especially true in a slower market where non-contingent buyers aren’t lining up.
As Georges puts it, “it’s all about the numbers and the execution,” and for a seller weighing a contingent offer, execution means confirming the buyer’s financing and timeline are actually solid, not just accepting the highest number on paper. On average, our commission rebate returns roughly $22,000 at closing, money buyers sometimes use to strengthen a contingent offer’s deposit. Run your full numbers on the closing cost calculators before you decide.
Common questions
What is a contingent offer? An offer in which the buyer discloses upfront conditions, such as financing, appraisal, or inspection, that must be met before the sale closes.
What does a non-contingent offer mean? An offer with no conditions attached, often all-cash, in which the buyer is obligated to close regardless of financing, appraisal, or inspection results.
What is a Hubbard contingency in NYC? A clause that makes a buyer’s purchase contingent on the buyer first selling their current home, named after a 1987 New York court case. The seller can keep marketing the home during that window.
What does “Contingent” mean on a real estate listing? It usually means the seller has accepted an offer with conditions attached and the sale isn’t final. The home may still be shown, and some sellers accept backup offers.
How can I make my contingent offer more competitive? Strengthen the parts you control: a larger deposit, a flexible closing date, and a strong pre-approval all help, even with contingencies still in place.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
