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We recently put an offer on a home contingent on the home not requiring flood insurance. It did but the seller put in a request for map amendment with FEMA as we moved forward as we were made to believe the request would
be be approved. We extended the closing date. The request was denied. My realtor is now saying that the contingency has expired and we cannot back out without the losing our earnest money. Are we still protected under the contingency clause?
Asked on June 10, 2017 under Real Estate Law, Indiana
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
No, if there was a certain or specific date in the contingency and that date has passed or expired, you cannot back out--it doesn't matter why you missed the date to exercise the contingency, such dates are nonethelesss enforceable against you. If there no specific date for the flood insurance contingency, then the date by which it needed to be fulfilled--or by which you could terminate the agreement--would be the closing date (i.e. if there no specific date regarding the insurance, they'd need to show it did not need flood insurance before you closed). In this case, if you have yet closed, you should be able to terminate the agreement.