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The purpose of a subject clause contained
in an offer to purchase is to set out a specific condition
that must be fulfilled before the sale can go through.
One common subject clause you might encounter
is one in which the buyer makes the sale conditional
upon their finding the exact amount and type of financing
which will enable them to purchase your home.
Remember that, if you accept an offer
that contains a subject clause, you are effectively
taking your property off the market for the period in
which the purchasers are attempting to meet the conditions
they have set. Therefore, we will ensure that an agreed
upon time for the condition to be met is specified in
the offer to purchase.
If one of the conditions contained in
a subject clause cannot be met after every reasonable
effort has been made to do so, the contract ends and
there is no legal obligation to complete the purchase
or sale.
As a seller, you may wish to accept an
offer containing a subject clause (e.g., subject to
the buyer selling their own house) yet still leave yourself
free to consider other offers, just in case the buyers
are unable to remove the condition. You can do this
by having the buyer agree to insert a time clause
in the contract. A time clause will permit you to
require the buyer to remove all subject conditions within
a short, specified time period if you receive another
offer that you would like to accept. If the buyer does
not remove the conditions within that time, the conditional
contract comes to an end and you are free to proceed
with the second offer.
Do you know all of the pros and cons of
using a Time Clause Form in a Contract Of Purchase And
Sale? WE DO! Contact Us for More Details!
Liz
Grambart Anders
Treiberg
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