Do you want to buy a home but need to sell your home first?

The situation arises in every market that a Buyer needs to sell their home before they can close on the purchase of their next house!  To accomplish this, a Buyer Agent, in consultation with the Buyer's attorney, will often add "A Buyer Sale of Home Contingency" (sometimes referred to as a Hubbard Agreement in other states) to the contract.  This is an additional contingency placed on a real
estate Purchase and Sale Agreement.  

Typically, in the Greater New Haven region, there are two contingencies
associated with a Purchase and Sale Agreement; an inspection contingency and a
mortgage financing contingency. The Buyers have the right to inspect the home
and perform critical tests, report the results of those inspections/tests back
to the Seller and negotiate defects found. The Buyers also have some time to obtain mortgage financing from a bank or mortgage brokerage company. Typically, financing contingencies have an embedded appraisal contingency - that the house must appraise to the purchase price stipulated in the contract. 

With either of these contingencies, the right to rescind the contract is in the Buyer's control - if they find defects of concern which the Seller won't remedy, they can terminate the agreement.  If they can't get their mortgage financing in the timeframe specified, they can either ask for an extension of the mortgage commitment date or rescind the contract if the extension is not granted by the Seller. 

The standard New Haven Board of Realtors "sanctioned" Purchase and Sale
Agreement provides a lot of protection for the Buyer, in terms of the Buyer's
ability to terminate/rescind the contract.

Why Should A Seller Consider a Buyer Sale of Home Contingency Addendum
(BSHCA)?

Accepting a contract with a BSHCA allows the Seller to continue to actively
market the property. On the Multiple Listing Service System, the house remains
on "Active" status.  Without specifically screening for this contingency, Buyer agents still see your home as active and available to for their buyers to tour.  If another offer presents and the Sellers feel the terms/conditions/price are more favorable than the contract with the BSHCA, the Seller still has the ability to negotiate this second contract.   If this negotiation comes to agreement, the
Seller has to go back to Buyer #1 to inform them that they have 48 hours to
release the BSHCA.  If the Buyer is able to release that addendum, the initial contract remains in force.  If not, the Seller is able to move forward to formalize the second contract.

So you can read, that since a Buyer Sale of Home Contingency Addendum
attaches an additional contingency to a Purchase and Sale Agreement, the
protection afforded a Buyer in terms of control in the transaction does not exist until this additional contingency is released. 

Have any questions about the Buyer Sale of Home Contingency or other real estate issues?  Give me a call! Check out my websites: www.carolcangiano.com or www.carolcangianorealtor.com.