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Explain an Offer or Contingency

When to use this

Your client just read the offer and their eyes glazed over. The inspection contingency, the financing clause, the earnest money terms — it's dense, and they're nervous. Use this to turn any contract term into a short, clear explanation they can actually act on. It works whether you're reviewing an offer your buyer is about to sign or walking a seller through what the buyer is asking for.

The prompt

Paste this into ChatGPT, Claude, or Gemini. Fill in the brackets.

I'm a real estate agent explaining a contract term to a client. Write a short,
plain-language explanation of the term below. Keep it under 120 words.

Term or clause: [paste the exact clause, or name the contingency — e.g.
"inspection contingency," "financing contingency," "escalation clause"]

Client's situation: [e.g. "first-time buyer reviewing an offer they're about
to sign" or "seller evaluating a buyer's counter-offer"]

Reading level: [plain and simple / clear and confident / conversational]

Instructions:
- Explain what the term does in practice, not just what it says.
- Use a simple analogy if it helps the concept land.
- Do NOT invent specific deadlines, dollar amounts, or legal conclusions.
- Do NOT give legal advice or say what the client should do.
- End with one sentence the agent can use to transition the conversation.

Before and after

What you start with — the raw contract language:

This agreement is contingent upon Buyer obtaining a written commitment for a mortgage loan in the amount of $_ at an interest rate not to exceed _% per annum, amortized over __ years, within days of the acceptance date of this contract. If Buyer is unable to obtain such commitment within the specified time, Buyer shall notify Seller in writing, and this contract shall be null and void and all earnest money shall be returned to Buyer.

What you get back:

A financing contingency is your client's built-in exit if the mortgage falls through. Think of it as a hold on the sale while the lender does their work — the buyer has an agreed number of days to get a written loan commitment. If the bank says no, the buyer notifies the seller in writing, the deal ends, and the earnest money comes back. If the deadline passes without a commitment and without written notice, the buyer could lose that protection. It's the clause that keeps a buyer from being trapped in a contract they can't fund. Ready to walk through the timeline together?

The before is what clients get when they read alone. The after is what they hear when you explain it.

Make it yours

  • Swap the clause. The prompt works on any term — escalation clauses, appraisal contingencies, as-is language, earnest money release conditions. Name it or paste it.
  • Match your client. A first-time buyer needs "plain and simple." A repeat investor might want "clear and confident." Change the reading level line.
  • Ask for the seller's view. Add "explain it from the seller's perspective" if your client is the listing side. Same clause, different stakes.
  • Request an analogy only. Add "give me just the analogy in one sentence" if you already have the explanation and just need a memory hook.

Watch out for

An AI explanation is not legal advice — and neither is yours. Your job is to help clients understand what a term does in plain language. Their attorney's job is to interpret what it means for their specific situation and tell them what to do. If a client needs a definitive read on their rights under a clause, refer them to a real estate attorney. Keep that boundary clear every time.

You own the accuracy of what goes to the client. The AI describes contingencies correctly in general — but it doesn't know your client's actual deadline, dollar figure, or state law. Review every output against the actual contract before you share it. Don't let the AI invent a detail that wasn't in the clause you gave it.

Watch for invented specifics. If the AI output includes a number, a named deadline, or a legal conclusion that wasn't in your input, delete it. The prompt tells the AI not to do this, but verify anyway. You're the backstop.