If you are selling your home and receive an offer from someone that contains a contingency to sell their home first, you should make sure the offer contains an escape clause. When a person needs to sell their home first before buying yours, you could get tied up in this contract for months, and there is a chance you might never end up selling the house to this particular buyer. This is why you should add an escape clause to an offer you receive that has a contingency that the buyer must first sell his or her home.
What is a contingency to sell a house before buying another?
A contingency to sell a house before buying another one occurs when a person wants to buy a house but needs to sell theirs first. This person could write up an offer to buy the house that he or she wants and could include that the sale is contingent upon him or her selling the house he or she currently owns. Sellers can be leery to accept offers with this particular type of contingency because it is not a guaranteed sale. If the buyer cannot sell his or her home, he or she will not be able to buy the house.
What is an escape clause?
An escape clause is something that the seller can add into the contract with a deal that contains this form of contingency. Adding an escape clause means that the seller can continue showing his or her home to other people and can even accept offers on it. If the seller receives an offer, after accepting the contingency offer, the seller will utilize the escape clause. When this happens, the seller will tell the original buyer that he or she has up to two or three days to remove the contingency part of the deal. In other words, the original buyer must buy the house right now instead of waiting to sell his or her home. If the original buyer cannot do this, then the seller can sell the house to a different person.
How does an escape clause help you?
An escape clause is necessary if you accept an offer that contains a contingency to sell. It will protect you when selling your house, as it will allow you to sell the house to someone else during your contract with the first buyer.
If you are selling your house and receive an offer like this, make sure you talk to your real estate agent about the offer, and also make sure you add an escape clause if you accept the offer. You can ask your agent any additional questions you might have.Share
26 April 2018
I have always been someone who is passionate about making the world around me more beautiful, which is probably why I was drawn to real estate initially. I really wanted to create a place where me and my family could spend a lot of time together in a peaceful, relaxing place, so I started looking for places in my area that were fit for the job. Within a few months, I was able to find an incredible property that was within my price range, so I purchased it as soon as possible. This blog is all about choosing beautiful real estate.