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Property Sale Contingency In A Real Estate Contract

by | Jan 2, 2023

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Property sale contingencies are rare in hot real estate markets, but more common in soft markets.

Favorable for buyers (but not sellers), property sale contingencies allow buyers to sell one piece of property before they’re obligated to buy the property they’ve just put a contract on.

What Is A Property Sale Contingency
Also known as “home sale contingencies,” property sale contingencies are clauses that allow buyers to get out of buying a property (generally, without losing their earnest money) if they’re unable to sell another property. Property sale contingencies are typically very specific and will include address of the property that needs to be sold and a deadline for selling it.

Property Sale Contingencies – Buyers

Property sale contingencies can be fantastic for buyers, giving them the luxury of buying a property and selling a property simultaneously. This can help buyers avoid a “double-move” (selling their current property, moving somewhere temporarily while they look for a new property, then moving again when they purchase their new property).

In order to get a seller to agree to a property sale contingency, however, you might have to increase the amount of your earnest money, limit the amount of time you need for your other property to sell, allow the seller to continue to market the property you’re trying to buy, and/or throw in other incentives for the seller.

Property Sale Contingencies – Sellers
Property sale contingencies are extremely risky for sellers. If you agree to this clause, you’re agreeing to take your property off the market while you wait for another person’s property to sell. Given that you have no control over the sale of the buyer’s property, you’re at the mercy of the buyer and the real estate market.

Waiving The Property Sale Contingency
As a buyer, it’s likely that you’ll have to waive the property sale contingency in order to get the seller to accept your offer.

We’re Here For You – Experienced Real Estate Attorneys
If you have a dispute over a property contingency clause or any other aspect of a real estate contract, we can review your real estate contract and let you know your options.

See related topics:
Earnest Money – Real Estate Sales Contract
Inspection Contingency – Real Estate Sales Contract
Financing Contingency – Real Estate Sales Contract
Appraisal Contingency – Real Estate Contract
Title Contingency – Real Estate Contract

At Timely Contract, we have local real estate attorneys who have experience throughout Idaho, including: Boise, Post Falls, Coeur d’Alene, Lewiston, Moscow, and Sandpoint.

We also have local real estate attorneys who have experience throughout Montana, including: Missoula, Billings, Bozeman, and Kalispell.

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