Found the perfect Lakeview home only to see “Contingent” on the status line? You are not alone. Many New Orleans buyers run into this and wonder what it means for their chances. In short, the seller has accepted an offer, but the deal still must clear certain conditions before it can close. In this guide, you will learn exactly how contingencies work in Louisiana, which ones matter most in Lakeview, and how to use them to protect your purchase while staying competitive. Let’s dive in.
What “contingent” means
A contingent listing is under contract, but the buyer’s duty to close depends on specific conditions being met or waived within set deadlines. Common examples include financing, appraisal, inspection, title review, and insurance approval. If those conditions are satisfied, the status typically shifts toward pending and then to closing.
Local MLS labels can vary. You may see Active with Contingency, Contingent, or Under Contract used in different ways. Always ask the listing agent to confirm the exact meaning under Greater New Orleans REALTORS MLS practice, including whether the seller is accepting backup offers. Knowing which contingencies remain and the deadlines attached helps you judge how likely the home is to come back on the market.
Key contingencies in Lakeview
Financing contingency
This protects you if you cannot secure a mortgage on the terms outlined in your contract within the deadline. In Lakeview, lenders pay close attention to flood exposure, elevation certificates, and insurance costs. These factors can affect underwriting and your debt-to-income ratio. A strong local pre-approval helps, but you still need time to clear conditions tied to flood and homeowner’s insurance.
Appraisal contingency
An appraisal contingency gives you options if the lender’s appraised value is lower than the purchase price. You can negotiate a price change, bring extra cash, or cancel according to the contract terms. In New Orleans, recent remodels, unique elevations, and flood-mitigation upgrades can complicate comparable sales and influence appraised value.
Inspection contingency
This contingency gives you a period to inspect the property and either negotiate repairs or walk away. In Lakeview, pay special attention to:
- Flood and water damage, including past events and repairs.
- Mold and mildew in older or previously flooded homes.
- Foundation, slab, or pier-and-beam conditions and overall drainage.
- Electrical, plumbing, roof, and HVAC age and condition.
- Wood-destroying insects. Termite inspections and treatments are common.
- Hurricane-related roof wear and impact-resistant features.
Ask for seller disclosures and documentation of past repairs. Clear records help you assess quality and compliance.
Title and survey contingency
You will review the title commitment, exceptions, and survey for easements, encroachments, or liens. New Orleans lots can have complex histories. It is wise to verify that any municipal liens or code issues are addressed and that recorded easements are understood before you proceed.
Insurance contingency
This allows you to cancel if you cannot obtain homeowner’s insurance and any required flood policy at a reasonable cost. Many Lakeview homes sit in FEMA-designated flood zones where lenders require flood coverage. Premiums have shifted under FEMA’s Risk Rating 2.0, so request quotes during your contingency window and ask for the property’s elevation certificate if one exists. You can learn more about flood maps at FEMA’s Flood Map Service Center and about coverage through FEMA’s flood insurance resources:
- Review flood maps and designations at the FEMA Flood Map Service Center.
- Explore policy basics and Risk Rating 2.0 at FEMA’s flood insurance page.
Some buyers add a targeted contingency that the seller provide an elevation certificate or complete flood-mitigation repairs before closing.
Sale-of-home contingency
If you must sell your current home first, this contingency can protect you. It can also make your offer less competitive. In a tight Lakeview market, sellers may set strict timelines or decline this term altogether.
HOA and condo documents
Lakeview has pockets of condos and townhomes. Build in time to review association rules, financials, meeting minutes, and any pending special assessments before you commit.
Required disclosures
If a home was built before 1978, federal law requires a lead-based paint disclosure and delivery of the EPA/HUD pamphlet. You can review federal guidance on the EPA’s lead-based paint disclosure page. You should also receive a property condition disclosure. Ask for repair permits and receipts so you can verify the work.
How contingencies work in Louisiana
Timelines and deadlines
Contingency periods are negotiated in the purchase agreement. Typical timelines include 7 to 14 days for inspections and around 21 to 30 days for financing. Contract language often states that time is of the essence, which means deadlines matter. If a contingency is not satisfied by the deadline, you usually must choose to waive, request an extension, or cancel according to the contract terms.
Earnest money and escrow
You will deposit earnest money with a broker trust account or a title company soon after the contract is signed. The agreement should state who holds the funds and when they can be released. In Louisiana, closings often run through title companies or notaries. Make sure you understand how escrow disputes are handled under your contract.
Removing or curing contingencies
You typically remove contingencies in writing when satisfied. If inspections reveal problems, you can request repairs, credits, or a price change. The seller can agree, counter, or refuse. If you reach an impasse, the contract governs your options, including termination.
Notary and title company role
Louisiana closings often involve a notary or title company. Title insurance is commonly used. You will receive a title commitment during the contingency period and should review it carefully. When in doubt, consult a local real estate attorney for contract-specific questions.
Lakeview risk checks to prioritize
Flood risk and elevation
Flood exposure is a top concern in Lakeview. Ask for the FEMA flood zone designation, any available elevation certificate, and the property’s flood-claim history. Use your insurance contingency to obtain real quotes early. Elevation can significantly affect flood premiums and loan approval.
Past storm or flood repairs
Request permits, receipts, and contractor documentation for prior repairs. Verify that work was permitted and closed out. Look for warranties on roofs, mechanicals, and flood-mitigation features.
Drainage and foundation
Confirm lot grading, gutters, and site drainage. For older homes or signs of movement, consider a structural engineer evaluation. Your general inspector should flag moisture issues and poor drainage patterns.
Sewerage and infrastructure
Ask about any past sewer backups or drainage concerns. You can review utility and infrastructure information with the Sewerage & Water Board of New Orleans. Check for any outstanding municipal liens or work orders with your title company.
Buyer checklist during contingencies
- Get it in writing. Confirm every contingency and deadline with your agent and calendar the dates.
- Deposit earnest money. Verify who holds it and the release rules in the contract.
- Book inspections fast. Hire a general inspector and, as needed, specialists for roof, HVAC, plumbing, electrical, WDI, mold, and structural.
- Focus on flood indicators. Ask inspectors to note signs of past flooding, mold, or poor drainage.
- Start your loan file. Submit documents to your lender immediately and respond to requests quickly.
- Get insurance quotes. Obtain homeowner and flood quotes during your insurance contingency. Ask for the elevation certificate if it exists.
- Order title and survey early. Review the title commitment and exceptions. Confirm setbacks, easements, and encroachments on the survey.
- Review disclosures. Read the property condition disclosure and the lead-based paint disclosure for pre-1978 homes. Ask for permits and receipts.
- Be ready to negotiate. If issues arise, submit specific repair requests or credit amounts. Move quickly so you do not miss deadlines.
- Keep records. Save all reports, quotes, maps, and certificates. You may need them for closing and future resale.
Make your offer competitive
- Show strong pre-approval. Use a reputable local lender experienced with New Orleans flood underwriting.
- Shorten windows carefully. A 7 to 10 day inspection period can help, but only if you can schedule quickly.
- Front-load inspections. Pre-schedule vendors for the first available days to meet tight timelines.
- Right-size earnest money. Offer a meaningful deposit to show commitment without taking on undue risk.
- Use targeted waivers. If you can cover a potential appraisal gap, consider narrowing that contingency rather than waiving all protections.
- Be transparent on timing. Sellers value certainty. Communicate your financing status and closing target clearly.
- Consider a post-inspection deposit. In some cases, a nonrefundable amount after inspections can offset a stronger cash competitor. Follow local norms and your attorney’s advice.
When waivers make sense
In multiple-offer situations, you might be tempted to waive contingencies. Full waivers can expose you to costly surprises. A smarter approach is to keep protections that address Lakeview’s biggest risks, like insurance and flood, while narrowing others to fit your capacity. For example, you might keep structural, termite, and insurance contingencies while limiting cosmetic repair requests. Always match your strategy to your finances, timeline, and risk tolerance.
The bottom line
Contingencies are not hurdles to fear. They are tools that help you verify the home you love is financeable, insurable, and ready for long-term ownership in Lakeview. By moving fast on inspections, getting insurance quotes early, and staying on top of deadlines, you can protect yourself and still write a competitive offer.
Ready to navigate a contingent listing or craft a winning plan in Lakeview? Let’s connect and map out your timeline, inspections, and offer strategy so you can move with confidence. Reach out to Spencer Rossie to get started.
FAQs
What does “contingent” mean on a Lakeview listing?
- It means the seller accepted an offer but the sale depends on contingencies being satisfied or waived. Ask if backup offers are allowed under current MLS status.
How do Louisiana contingency timelines work for buyers?
- Deadlines are written into your contract. Common ranges are 7 to 14 days for inspections and 21 to 30 days for financing. If a deadline passes, you typically must waive, extend, or cancel per the agreement.
Can I cancel if inspections find flood damage in Lakeview?
- Yes, if you act within your inspection contingency period under the contract. If you waived the inspection contingency, canceling may forfeit earnest money.
Who holds earnest money in New Orleans deals?
- Earnest money is usually held by a broker trust account or a title company. The contract’s escrow instructions control release and dispute procedures.
How do flood zones affect insurance and loans in Lakeview?
- Many homes require flood policies based on FEMA zone and elevation. Premiums are set under Risk Rating 2.0. Get quotes early and review flood maps at the FEMA Flood Map Service Center.
