A home sale contingency in real estate is a condition that requires the sale of the buyer’s current home to be completed before the purchase of a new home can be finalized(see Closing Date). It is typically included in the Buy-Sell Agreement or contract for the new home and is designed to protect the interests of both the buyer and the seller.
A home sale contingency is typically used when a buyer is interested in purchasing a new home, but they are unable to do so until they have sold their current home. The contingency allows the buyer to move forward with the purchase of the new home, while still having the option to back out if they are unable to sell their current home.
If a home sale contingency is included in the contract, it means that the sale of the new home is dependent on the sale of the buyer’s current home. If the buyer is unable to sell their current home within a specified timeframe, they may be able to cancel the contract and receive a refund of any deposits they have made.
A home sale contingency is an important tool for protecting the interests of both the buyer and the seller in a real estate transaction, as it helps to ensure that the sale is dependent on the buyer being able to sell their current home.
Category : Lexicon