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If the buyer discovers negative information regarding the property during this time, he can cancel the escrow and receive a refund of his earnest money, says Bryan Zuetel, a real estate attorney and broker at Esquire Real Estate, in Orange County, CA.

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If the buyer needs to sell a home in order to finance the purchase of a new home, the seller may decide to include a "kick-out clause" that allows the seller to continue to show the house and accept other offers.

The customary ones for the buyer's loan are property appraisal, financing, home inspection, disclosures, homeowners association disclosures, and a title report, says Zuetel.

The specific contingencies are set and agreed upon by the buyer and seller.

If the original buyer can't sell the home in a certain period of time—say, 60 or 90 days—then the seller can "kick out" that buyer and go with a new offer, rather than waiting indefinitely to close the original deal.

If a buyer is getting a mortgage, the lender requires the buyer to pay for an appraisal.

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