A home sale contingency is a clause in a real estate agreement that requires a buyer to sell their current home before purchasing a new one. This protects the buyer from financial burden and owning multiple homes. The seller can accept or reject the offer based on market conditions. If accepted, the buyer is given a set timeframe to sell their home, and a kick-out clause may be added allowing the seller to seek better offers. If the buyer does not sell within the designated period, the agreement can be canceled without penalty.
A home sale contingency is a term added to a real estate purchase agreement by the buyer that makes the sale conditional on the buyer selling their current home first.
If the seller accepts, the buyer has a specified time frame to sell their home as outlined in the clause.
Often the seller will add a kick-out clause to the agreement, which allows the seller to market their home and if a better offer comes in.
If the buyer does not sell their home in the timeframe, the agreement is canceled without penalty, and the buyer's earnest money is refunded.
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