Purchase Agreement Contingent on Sale of Home
If you are in the market to purchase a new home, it is not uncommon for the purchase agreement to be contingent on the sale of your current home. This means that the sale of your new home will only go through if you are able to sell your current home within a specified timeframe.
A purchase agreement contingent on the sale of a home is generally put in place to protect both the buyer and the seller. The buyer is protected in that they are not obligated to purchase the new home if they are unable to sell their current home. The seller is protected in that they are not obligated to take their home off the market while the buyer tries to sell their home.
When entering into a purchase agreement contingent on the sale of a home, it is important to have a solid understanding of the timeframe that has been put in place. The timeframe will typically be outlined in the agreement, and will include a date on which the contingency will expire. If the buyer has not sold their current home by this date, the agreement will become null and void.
In addition to the timeframe, it is important to understand the terms of the contingency. In some cases, the contingency may allow for the buyer to back out of the agreement even if they do sell their current home. This is something that the buyer should be aware of before signing the agreement.
Finally, it is important to understand that a purchase agreement contingent on the sale of a home can put the buyer in a weaker bargaining position. If the buyer is unable to sell their current home within the timeframe specified in the agreement, they may lose out on the opportunity to purchase the new home. This can put the buyer in a position where they are more likely to agree to terms that are not in their best interest.
At the end of the day, a purchase agreement contingent on the sale of a home can be a useful tool for both buyers and sellers. However, it is important to fully understand the terms of the agreement before signing on the dotted line. This will help to ensure that both parties are protected and that the transaction goes smoothly.