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

The correct answer, approval for financing, refers to a crucial contingency often included in real estate transactions. This contingency allows the buyer to secure a loan or mortgage to finance the purchase of the property. It protects the buyer by ensuring that if they cannot obtain the necessary financing, they can back out of the agreement without penalty. This is particularly important in real estate, as most buyers rely on loans to afford property.

While earnest money deposits, title insurance, and home appraisals are relevant components of real estate transactions, they do not directly serve the purpose of securing financing. An earnest money deposit is typically a show of good faith from the buyer, title insurance protects against potential title issues, and a home appraisal assesses the property's value but does not guarantee financing. Thus, of all the options listed, approval for financing is the most closely related to a buyer's ability to proceed with a purchase based on their financial capability.