If you represent a seller in the sale of real estate and that sale is to be subject to the seller purchasing another property, be certain the terms of that contingency are detailed, clear and are included in the offer to purchase.
We often see language to the effect that the seller’s obligation to perform is “subject to successfully contracting to purchase another property.” That is all well and good, but it does not fully protect the seller. Once the seller contracts to purchase another property that contingency is extinguished and the seller can be obligated to perform under the contract. We all know that contracting to purchase a property and actually CLOSING on the property are often two different events.
To properly protect a seller their performance should be subject to actually CLOSING on the purchase of another property by a certain date. If you have a seller that has questions or concerns about a home sale contingency please have them contact me. Or if you have questions about the specific and prudent language to use give me a call.