Contract Subject to Sale of Property

When it comes to real estate transactions, the phrase “subject to sale of property” can be a critical component of a contract. Essentially, this clause indicates that one party (usually the buyer) is willing to move forward with the transaction, but only under the condition that they are able to sell their own property first.

From the buyer`s perspective, including a subject-to-sale clause offers some protection. It ensures that they won`t be stuck with two properties and two mortgages if they can`t sell their current home in a timely manner. It can also provide some peace of mind, knowing that they won`t be expected to close on the purchase until they have successfully sold their own property.

For sellers, however, subject-to-sale clauses can be a bit of a mixed bag. On the one hand, they may be reluctant to accept an offer that is contingent on the buyer`s ability to sell their home. This could lead to delays or complications in the transaction, or even result in the sale falling through entirely if the buyer is unable to sell their home.

On the other hand, subject-to-sale clauses can also provide some level of assurance to the seller that the buyer is serious about the purchase. After all, if the buyer is willing to go through the trouble of including such a clause in the contract, it suggests that they are committed to the transaction and confident in their ability to sell their own property.

Navigating subject-to-sale clauses can be complicated, and both buyers and sellers should consult with their real estate agent or attorney before including such language in a contract. It`s important to ensure that all parties understand the implications of such a clause and that the specific language used is clear and unambiguous.

Ultimately, including a subject-to-sale clause in a real estate contract can be a useful tool for buyers and sellers alike. It can provide protection and assurance, but it can also introduce potential complications. Consulting with an experienced real estate professional can help ensure a smooth transaction and mitigate any potential issues that may arise.