Contingencies are conditions of a business purchase that cannot be guaranteed to occur at the time an offer is accepted, but must be completed for an escrow to close. Contingencies are a part of almost every business purchase. The four most common contingencies are: Due Diligence - This is the process where a Buyer verifies the financial records of the business and reviews any other supporting documents. This is the Buyer’s opportunity to confirm the authenticity of the business and answer any outstanding questions about its' operations. Completing due diligence to a Buyer's satisfaction typically occurs prior to entering escrow. Lease - For businesses with a lease, the purchase is typically contingent upon the Landlord approving both the Buyer's tenancy and use of the space. The Landlord will then agree to either assign the Seller's existing lease or negotiate a new lease with the Buyer. Each Landlord has their own process to qualify a Buyer. Financing - When financing is required to complete a purchase, the deal is usually contingent on the Buyer obtaining sufficient funding on satisfactory terms. Franchisor - Franchise businesses require the franchisor to approve the Buyer before a sale can be completed. Each franchisor has their own process to qualify a Buyer. Lease, financing, and franchisor contingencies generally continue into escrow. They occur simultaneously because each can be a lengthy process, ranging from 30 to 90 days. By the end of escrow, all contingencies must be completed for the deal to close.