Home Sale Contingency Clause
A clause frequently included in a real estate contract that makes the purchase dependent upon the sale of the buyer’s home. Basically, if the buyer’s house sells by the specified date, the contract moves forward. If the buyer’s house does not sell by the specified date, then the contract is terminated.
- Example : Linda agrees to purchase Tony’s home, but their real estate contract has a home sale contingency clause based on Linda first selling her current home by May 1. Tony wants to terminate the contract, but Linda sells her home on April 25. Tony must not go forward and sell his house to Linda.