Home Buying in Hopkinton>Question Details

marjorie_end…, Home Buyer in Fort Wayne, IN

If I make on offer to buy with the contingency of selling my house and an offer to purchase my current home falls through am I released from the offer

Asked by marjorie_enders, Fort Wayne, IN Tue Sep 17, 2013

Help the community by answering this question:

Answers

7
Scott A. Nelson’s answer
Typically yes, offers with a contingency are structured like this for this reason. Absolute care must be tken to follow not only the spirit of the agreement but also the letter of what is spelled out in the agreement. Times, dates, methods of notification etc. Are something you have to be aware of and careful not to let things slide without getting propper written agreements signed and in hand by EVERYONE party to the agreement. You might consider utilizing the service of your own personal attorney to draft the language to best protect your interests.

Hope this helps,
2 votes Thank Flag Link Wed Sep 18, 2013
It depends on how your offer is written. Most home sale contingencies include a clause that if the home does not sell with in a specified amount of time, the buyer is released. For teh sellers protection, they may want to add if another buyer comes along without a home sale contingency, than the buyer with one has say 48 hours to release that contingency and buy or be released in favor of the new buyer,
1 vote Thank Flag Link Wed Sep 18, 2013
Generally yes..as this is the point of a home sale contingency but need to make sure it is worded to protect your deposits and has no further recourse. Must send he proper notifications in writing to the sellers and/or their representatives of the home you are purchasing.if you are using a buyer's agent or an attorney they will be able to clarify this further. As said below you must adhere to all the dates and time frames of the contract otherwise.
1 vote Thank Flag Link Wed Sep 18, 2013
Go over this with your Realtor, they will be able to go over the what ifs with you.
0 votes Thank Flag Link Wed Sep 18, 2013
This would likely depend on the terms of your agreement, It the agreement specified a specific property, purchasing party, and other terms specific to an agreement a non-sale may void the agreement. On the other hand, if the verbiage is open ended stating that the agreement is based on only the sale of your property, you may be committed to a longer term.

Generally, sellers don't want to waste their time waiting on a property that and/or an agreement that stands little chance of reaching a successful closing.

Your real estate professional should be able to guide you through this. Their knowledge of the purchase agreement should prove invaluable.

Good luck,

Bill
0 votes Thank Flag Link Wed Sep 18, 2013
That's a great question Marjorie. You want to be sure that within the offer you have a contingency with language that suggests if your home fails to sell you are not responsible for purchasing the property. Often this language comes with an end date meaning if the buyer backs out of your sale you are protected up until that date but after the deadline you are no longer protected. This date should be later than your buyers commitment letter. If you have a real estate attorney at this stage it's a good idea to consult with them and ask for specific language to protect you. Keep in mind home sale contingencies are not very attractive to sellers and often are hard for them to accept. You will want to work with your agent to discover any ways possible to make your offer more attractive with other terms.
Good luck!
0 votes Thank Flag Link Wed Sep 18, 2013
If your current home is already under contract making a contingent offer on the next one is not a bad move. If you have not found a buyer for your existing home yet, then trying to get to second base without taking your foot off first is probably not a good idea. A seller is going to classify you as a brick kicker not a buyer, so this type of offer will usually cost a lot more. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Wed Sep 18, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer