The Sale Contingency Clause in a Real Estate Contract
Are you buying or selling a home in Western New York and have questions about the sale contingency clause in a real estate contract? Watch this short video by Buffalo Real Estate Attorney Richard H. Cole to learn more. If you have questions about your particular real estate transaction, contact us to schedule a consultation. Let our experience work for you.
- One complex issue that can arise in a real estate transaction involves a purchaser who, in order to complete their purchase, must sell the home in which they presently reside because they need the money from the sale of their current home in order to complete the purchase of the new one.
- When a sale contingency is required, a specific rider is executed setting a specific number of days within which the buyer must enter a bona fide sale contract for the home they’re selling in order to keep the purchase contract alive. This is called a sale contingency clause.
- A bona fide contract requires the buyer to, not only enter a contract for sale of their home, but also to overcome the attorney approval and home inspection contingencies. If both of those items are accomplished within the requisite time, the sale and purchase will proceed – presumably with simultaneous closings. As the buyer, you will complete your sale first, and then immediately take the money from that sale to the closing of your purchase to complete that transaction.