Home Sale Contingency Addendum

A Home Sale Contingency Addendum is a document added to a real estate purchase agreement that makes the buyer’s offer contingent on selling their current home. Key points include:

1. Protects the buyer from owning two properties simultaneously

2. Specifies a timeframe for the buyer to sell their existing home

3. Often includes a “kick-out” clause allowing the seller to accept other offers

4. May require the buyer to list their current home within a certain period

5. Can detail conditions for extending the contingency period

6. Outlines procedures if the buyer’s home doesn’t sell in time

This addendum balances the interests of both buyer and seller. It gives buyers the security of not committing to a new home purchase before selling their current one, while allowing sellers to continue marketing their property. However, it can make an offer less attractive to sellers in competitive markets. Buyers should carefully consider market conditions and their financial situation before including this contingency. Clear communication and realistic timelines are crucial for successful transactions using this addendum.