Most purchase-and-sale agreements contain one or more contingency clauses, which allow the buyer to walk away from the purchase if certain conditions are met. You can choose to include several contingencies—or not—in your agreement.
An “inspection contingency” allows you to get out of the deal if you’re unsatisfied with the home inspection, while a “financing contingency” lets you back out if you don’t qualify for a home loan. There’s an “appraisal contingency,” too, in cases where the home’s value doesn’t match the selling price, and a “sale of home contingency” if you need to sell your original home before buying the new one.
There are usually expiration dates on each contingency, so you may only have a few days to decide. There may be penalties, too, such as losing the earnest money you provided with the contract.