Most seasoned Realtors or Real Estate Investors have heard of subject to sale. The common clause that is used is as follows:
“Subject to the Buyer entering into an unconditional agreement to sell the Buyer’s property at (address) on or before (date) . This condition is for the sole benefit of the Buyer.”
This clause, or subject, is most commonly used in a situation of balanced market conditions. Most smart home owners know that they plan to sell before they do and they start looking at houses prior to selling. This is a smart move. If you are looking in an area currently known for the fact that the real estate there is selling at a slower speed, then put in a “Subject to Sale” Offer Prior to getting your home on the market! Then get your house sold with multiple’s and negotiate your dates for the next home!
The “Flip Side” to this clause and most commonly used in multiple offer situations is “Subject to Purchase”.
A common clause inserted for this subject is as follows:
“Subject to the Seller entering into an unconditional agreement on or before (date) to purchase another residence.
This condition is for the sole benefit of the Seller.
Sounds like the ideal clause! When is this clause put to use?
If in a sellers market, you haven’t already found that perfect home, and you receive multiple offers competing for your current home.. often a buyer who is willing to go over asking may give in to this clause as well. In this situation it would be the prime example of when to implement such clause (especially if you have a backup offer).
Have any questions? Contact Ryan Taylor today for more clauses which help you make your move a successful one.