We received another question from a viewer this week: “Mark, I’m thinking about purchasing a home, but I really need to sell my home. Is it possible to do that?”
Yes, it is. With so many transactions occurring, it is very common that a buyer will make an offer to purchase real estate subject to selling their home first. Most sellers understand that most buyers cannot buy a new home without first selling their current home.
Buyers should be careful to make sure the language in the contingency is very clear. It is not unusual to see accepted offers with home sale contingencies that are unclear and do not protect the buyer.
We recommend drafting the contingency to include language similar to: “The purchase of [property] is specifically subject to the sale of [property] and the receipt of the proceeds from that sale.”
We often see contingencies that provide buyers with a certain amount of time to have their home under agreement. What happens if that transaction goes sour? We like to have a contingency that says the buyer’s obligation to purchase arises only if the buyer’s house has been sold and the proceeds have been received.
If you have any questions about a buying with a contingency, contact Stiles Law by calling (781) 319-1900.
Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.