What type of contingency is meant to protect buyers from owning two homes at once?

An appraisal contingency is a clause that allows the buyer to back out of a purchase if the property's appraised value is lower than the purchase price. This protects the buyer from overpaying but does not address the issue of owning two homes at once, as it solely focuses on the valuation of the property being purchased.

A financing contingency enables buyers to withdraw from a purchase if they are unable to secure the necessary mortgage financing. While important for ensuring financial feasibility, it does not directly relate to the concern of owning two homes simultaneously, as it does not account for the sale of the buyer’s current property.

An inspection contingency allows buyers to have the property professionally inspected and to withdraw from the purchase if significant issues are found. This contingency is crucial for assessing property condition but does not provide protection against the financial implications of owning multiple homes, which is the primary concern addressed by the sale of another property contingency.