A contingency on the sale of another home is now referred to as a Conditional Sale in the Colorado approved Contract to Buy and Sell Real Estate. It will be listed in section 10.7 of the Colorado approved Contract to Buy and Sell Real Estate. Of importance is that a Buyer is entitled to a return of the earnest money unless the contract specifies differently since it is a condition of the sale between you and the Buyer.
Sales conditions can also apply when an appraiser or lender sets conditions for repairs that have to be done in order to sign off on the appraisal for the lender to approve the loan for closing.
You are not required nor will you be in default of your sale contract if you refuse or can’t do the repairs. You will simply have a contract that cannot close for these reasons and the sale will terminate. The Buyer will also be entitled to a return of the earnest money.