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the proven resource for selling, financing, maintaining and improving your home
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Buy & Sell Real Estate
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the best
For Sale By Owner book
The best-selling guide book
for all sellers. FSBOComplete™ is organized into 8 Simple Proven Steps, guaranteed to help you sell your house.
FSBOComplete™ gives sellers knowledge and control of the whole
selling process + the know-how that puts sellers on equal footing with realtors.
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FSBOComplete™ eBooks.
By reading and following FSBOComplete™ proven guides, you, the For Sale By Owner
seller, will find the answers to your questions and:
- Sell your house for the most money, in the shortest time, with the least aggravation
- Get the know how that will put you, the For Sale By Owner seller, ahead of your competition, like how to:
- Maximize your profit by setting the right price
- Handle inspection issues
- List your house on the Internet for FREE
- Gain knowledge and control of the whole selling process
- Learn to negotiate like the top agents
- and much, much more
Home Sale Contingency-A House of Cards?
© 2007 Complete Books Publishing, Inc.
Summary: A contingency is a condition that must be satisfied before the contract is binding.
A home sale contingency generally means that the buyer must secure a valid contract on her house or your contract is void.
Real estate contracts subject to a home sale contingency can be risky for you.
Real estate contracts subject to a home close contingency can be even riskier.
Where your real estate contract has a home sale contingency, the buyer has a specified period of
time to get his own house under contract. Obviously, if during the specified period the buyer
doesn't get a contract on her house, you do not have a contract either.
If the contingency is dependent upon her deal closing, as with a home close
contingency, it is even riskier. Until your buyer has sold her house and the deal has closed she can
give you notice and cancel the contract.
I recommend that if you accept a contract subject to a home sale or home close contingency,
you continue to actively market your house. It is also a good idea to learn as much as you
can about the house your buyer is selling. If it is already on the market and, if so, how
long has it been on the market. Check to see that it is priced appropriately. Also, if it
is listed with a real estate agent, ask your buyer if you can talk to her agent. An experienced
agent, especially one who has been through slow markets before, should have some insight as to
how long it will take to sell.
If your buyer has already sold her house, but it has not yet closed and you have a home close
contingency in your real estate contract, you should ask your buyer about her buyer and how
secure her deal is. In today's tricky mortgage market, you need to be careful not to base
your deal on a house of cards. If your buyer's deal is solid yours should be too.
This might also be a good place to check with a real estate lawyer to step in to help protect you.
NOTE: Contracts with home sale or home close contingencies should include a
kick-out clause. This way if you get another offer the buyer has a specified (in the contract)
number of hours, say 24 -72 after you notify her, to remove the contingency or your contract with
her is void.
REMEMBER: If your buyer decides to remove the contingency, be sure to get documentation from her
lender that she has qualified for a bridge loan or some other satisfactory assurance so that she
will be able to close the sale. Make sure the lender is solid. Today, even formerly solvent lenders
are having liquidity problems, assuming they are still in business.
see Mortgage Contingency
see Real Estate Contract ABC's - The Basics.
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