In what situation is a buyer's contract contingent regarding construction?

A buyer's contract can be contingent regarding construction when it specifically requires the buyer to obtain a building permit before the contract is deemed valid. This contingency protects the buyer by ensuring that they have the necessary legal permission to undertake construction before committing to the purchase. If the buyer cannot secure a building permit, they can withdraw from the contract without facing penalties, as their ability to proceed with construction is a crucial component of the deal.

The other situations listed, while they are common contingencies in real estate contracts, do not directly relate to the construction aspect. For instance, selling a current home or obtaining financing are essential in the overall transaction but do not pertain specifically to the buyer's ability to undertake construction plans. Similarly, completing a home inspection is vital for assessing the property's condition but does not involve construction approval or permits.