TIP
#18
What If Our Buyers
Must Sell First?
Consider this type of situation, sometimes
called a “contingency sale,” carefully. There's no
reason why you shouldn't accept such an offer
(assuming its other terms are satisfactory) provided
the purchasers' subject-to clause is :
- specific: “Subject to the
unconditional sale of the purchasers' property,
located at ____________, by noon, ______.”
Try to find out how long they've been on
the market, what sort of action they've had,
whether they're priced reasonably, etc.
- short-term: give them no
more than 30 days to sell; if they resist,
remind them that the limit might be extended
if necessary.
- cancellable: include a “back-out”
provision: “Should the vendor's property
attract a back-up offer before this clause
has been removed, the vendors retain the right
to cancel this clause upon 48 hours' written
notice to the purchasers.”
The point is to seize any conditional move towards
a sale, while retaining the freedom to exploit any
back-up opportunities that might arise.
This applies even in situations where your first
offer is subject only to financing or some other
short-term condition. Don't stop selling until
your property is SOLD, ie., until all subject-tos
have been removed from the offer to purchase.
Until then, encourage back-up offers -
second-place buyers will go along if they really
like your house and if your first offer's subject-to
deadlines are close.
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