Contingencies

A - Home Sale Contingency: How important is this buyer contingency?

Two types of contingencies clauses       

The following are examples of clauses that could be used for a sale based on the contingency of the buyers’ house. They are intended to familiarize you with the wording and logic of a home sale contingency. While these examples may work in your situation, you should use a clause that has been approved by your attorney as opposed to these generic examples.

 The standard kick-out clause:

ADDENDUM FOR A CONTINGENCY SALE WITH PRIOR NOTICE


1) This addendum is part of the Residential Sales Contract to purchase Real Estate located at ___________________________________________
by and between Sellers______________________________________
and Buyers _______________________________________________
This Contract is dated _____________________

2) Closing of this transaction will be contingent upon the Buyers successfully selling and closing on a sale of their property located at ______________ ___________________________________________________________
on or before _________________________ (date).

3) The Sellers may continue to market the Real Estate. The Buyers will notify the Sellers, in writing or by fax, when the Buyers have entered into a contract to sell Buyer’s Real Estate that will be closed within ____ days.

4) If the Sellers receive an acceptable offer from another buyer, the Sellers will notify Buyers of this offer in writing or fax and the Buyers will have ____ hours to remove this contingency without regard to the sale and close of Buyers’ property.

If Buyers fail to waive this contingency within the stated time, then this Contract will become null and void and the earnest money will be promptly returned to the Buyers.

5) All notification time periods will begin upon written delivery to the respective parties.


Date: _____________________         Date: ______________________

Buyer _____________________        Seller ______________________       

The optional kick-out clause:

ADDENDUM FOR A CONTINGENCY SALE WITHOUT NOTICE


1) This addendum is part of the Residential Sales Contract to purchase Real Estate located at ___________________________________________
by and between Sellers______________________________________
and Buyers _______________________________________________
This Contract is dated _____________________

2) Closing of this transaction will be contingent upon the Buyers successfully selling and closing on a sale of their property located at ______________ ___________________________________________________________
on or before _________________________ (date).

3) The Sellers may continue to market the Real Estate. The Buyers will notify the Sellers, in writing or by fax, when the Buyers have entered into a contract to sell Buyer’s Real Estate that will be closed within ____ days.

4) If the Buyers do not notify the Sellers of the sale of Buyers’ property and the Sellers receive another acceptable offer, then the Sellers shall have the right to accept the other offer WITHOUT giving any notice to Buyers. This acceptance will automatically terminate the Contract in its entirety. In such event, all parties will be released from any obligations and rights referred to in the Contract. Sellers will immediately notify Buyers of this new acceptance and the earnest money will be promptly returned to the Buyers.

Date: _____________________         Date: ______________________

Buyer _____________________        Seller ______________________      

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