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Old 06-08-2012, 07:30 AM
 
35 posts, read 77,988 times
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If we contract for a 90-day contingency for the buyer to sell his own house, and offer flexibility as to setting the closing date, does that mean:

1. the buyer must get a contract within 90 days?

OR

2. the buyer must actually go to closing within 90 days?

Obviously we will need to carefully read the language of our own deal but I am just wondering what is typical.

Thanks!
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Old 06-08-2012, 07:39 AM
 
Location: Inman Park (Atlanta, GA)
21,871 posts, read 12,747,135 times
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Typically, in the case you described, the Buyer has 90 days to procure a Buyer.

Do you have a Kick-Out Clause? You would give "x" number of days to Buyer to remove the contingency or can go with another potential Buyer?

What date do you have specified for a closing date? Typically a closing date is an actual date versus a calculated date so there is no misunderstanding of the closing date and so the closing date does not fall on a non-banking day too.
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Old 06-08-2012, 08:19 AM
 
35 posts, read 77,988 times
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Thanks - the contingency period will have a "no kickout" clause.

No closing date is not set yet - are you saying the closing date is usually set for some time after the contingency period ends? (As opposed to last day of contingency period?)
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Old 06-08-2012, 01:28 PM
 
Location: Needham, MA
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You want firm and solid specific dates in your contract. You really should be talking about this with your real estate agent. Real estate laws and practices differ quite a bit from place to place.
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Old 06-08-2012, 05:46 PM
 
Location: El Dorado Hills, CA
3,670 posts, read 7,972,766 times
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We have a specific form that details the options and deadlines. Have your agent go through your version of the contingency form. Make sure you have a way out of the contract if the buyer's house doesn't sell in a reasonable time.
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Old 06-09-2012, 08:56 AM
 
Location: Lexington, SC
4,281 posts, read 10,284,194 times
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Quote:
Originally Posted by NinaN View Post
We have a specific form that details the options and deadlines. Have your agent go through your version of the contingency form. Make sure you have a way out of the contract if the buyer's house doesn't sell in a reasonable time.

Nina

Would you not suggest sells and closes?
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Old 06-09-2012, 09:39 AM
 
Location: Salem, OR
13,740 posts, read 31,556,293 times
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Here we have to dates set. We have the date to procure a buyer and remove the home sale contingency, but then it is still contingent on that house closing, and then the close of escrow date. They aren't open ended and I can't imagine taking a home sale contingency with no kick out clause, unless you have a really unique, hard to sell home.
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Old 06-09-2012, 02:14 PM
 
Location: Newport News VA
71 posts, read 126,962 times
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You really should speak with you realtor/sales agent. The correct verbiage is very crucial. There is a big difference between being under contract and closing. Dates are very important. Why wouldn't you have a kick out clause? If a ready and able buyer comes along, wouldn't you want to secure their offer if the first buyer cannot perform without the home sale contingency?
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Old 06-10-2012, 08:42 PM
 
Location: Cranford NJ
1,042 posts, read 3,461,358 times
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Why would you even consider entertaining a contingency, when, you are only giving 90 days to the buyer to sell?

This is telling me
1. That you do have a market, and, therefore, can find another buyer,
2. You may have a hard to sell home. Or
3. You do not need to move so soon.
4. The buyer is not ABLE to purchase without selling.

Why can't you offer First right of refusal, since without an able buyer you cannot be under contract.
With the First right of refusal, the house does not come off the market, When you have another offer, you can go back to buyer 1 to see if he is ABLE to contract at that time.

Remember, You need a buyer who is Ready, willing and Able to purchase.
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