Home Selling in Novato>Question Details

sndez, Home Buyer in Novato, CA

Is it a common practice for the seller to add a contingency for them to find a home in 45 days or the contract is ended?

Asked by sndez, Novato, CA Tue May 14, 2013

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I've never seen this in my market, but if you agree to those terms perhaps you should consider requiring the seller to pay a penalty for the right to terminate the contract. For instance, any expenses you incur should be reimbursed along with a termination penalty. Whether the seller would accept such a provision depends on the overall market conditions in your area.
0 votes Thank Flag Link Wed May 15, 2013
I haven't see that exactly but many listings state the the owner has to find a replacement property...and we al know that takes time these days!!!

I am actually advising my sellers to find their nrew home first, put an offer in, and then get their homes on the market.

So...what you are sharing with us doesn't sound far-fetched, particularly in the Bay Area.

Take care.
0 votes Thank Flag Link Tue May 14, 2013
I aggree with Lisa, I have not come across this as of yet. With more and more homes in multiple offers, people are finding it hard to find a replacement property. If it is possible with a mulitple offer situtation, maybe negotiate to give the sellers a rent back instead of 30 days after the Close of Escrow. It will still give the sellers time to find a property while guranteeing that you gain possession of the home. There are also complexes in Marin County that offer short term rentals, the sellers could move into after the 30 days if they still have not found a property.
good luck!
0 votes Thank Flag Link Tue May 14, 2013
Thank you all so much for answering. I would love to know where those complexes are as that may an alternative for me while I find a place. My home is already sold. .
Flag Tue May 14, 2013
We're actually seeing that a lot - it's a very hard market for "move-up" sellers - they can sell their existing home very easily but usually have a very hard time finding a replacement home. Many sellers don't want to be out on the street, so they write a contingency such as this into their counter offers to protect themselves.

As Lisa stated, ideally you want to see that listed up front so a buyer knows about it before an offer is written - usually in the Instructions for Writing an Offer or in the Agent's Confidential Comments in the MLS - but sometimes sellers just write it into a counter offer.
0 votes Thank Flag Link Tue May 14, 2013
No, not in this market. But they certainly can make this request up front, before taking offers.
0 votes Thank Flag Link Tue May 14, 2013
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