Which of the following is a common contingency in real estate contracts?

A home appraisal is a common contingency in real estate contracts because it serves as a protective measure for the buyer. When a buyer submits an offer on a property, they often include a contingency that requires the home to appraise at or above a specific value. This contingency ensures that the buyer does not pay more for the property than it is worth, which is particularly important when they are obtaining a mortgage. If the home appraises for less than the agreed-upon purchase price, the buyer has the option to negotiate a lower price, request repairs, or even withdraw their offer without penalty, thereby reducing their financial risk.

In contrast, property taxes, home insurance, and mortgage interest rates are important factors to consider in a real estate transaction but are not typically framed as contingencies within contracts. Property taxes are an ongoing expense that homeowners must manage; home insurance is necessary for protecting against loss but does not impact the purchase agreement directly; and while mortgage interest rates can affect a buyer's overall financing costs, they are usually a concern that arises outside of the contract itself. Thus, they don't generally serve as a contingency to the purchase agreement like a home appraisal does.