What is likely a situation in which a land contract could be contingent?

A land contract can indeed be contingent upon various conditions, and in this context, considering the environmental impact results is a situation where contingencies are quite relevant.

In real estate transactions, particularly with land contracts, the buyer might want to ensure that the land is suitable for their intended use. If an environmental impact assessment reveals potential issues such as contamination, endangered species habitats, or other environmental concerns, the buyer may need to reconsider the purchase or negotiate terms based on those findings. This makes it a valid contingency in the contract, allowing the buyer to back out or alter the agreement based on these results.

Other situations, such as securing financing, may also serve as contingencies, but these are more common in traditional mortgage agreements rather than specifically related to land contracts. Home inspections are crucial for existing properties, not necessarily for raw land, which may not have a structure to inspect. Appraised value adjustments, while important, might not reflect a contingency directly tied to the suitability of the land itself. Contingencies related to environmental concerns directly affect the land's usability or legal compliance, making them critically important in this context.