Sale of Home

Mr & Mrs B were selling their home.  A purchaser was found by the Real Estate Agent.  The purchaser needed to obtain finance, obtain a building inspection report, and sell their home.  At that stage the purchaser had not even entered into any sort of contract to sell their home so our clients were left not knowing how long it would take for that to happen, or whether it might happen at all.

Our advice was to include a cash out/vendor's escape clause.  There are several versions of this in the market place.  We advised the best version for the vendor to give them protection so that they could still market the property and endeavour to obtain another offer on at least no less favourable terms but less conditional than the first offer.

A second purchaser was found and a second contract signed as a back up contract but enabling out clients to exercise their rights to give notice to the first purchaser.  The first purchaser was not able to make the contract unconditional within the time frame allowed and the second contract became operative. 

This gave our clients certainty and enabled them to settle their sale more quickly and easily than would have been the case had they not included the condition in the first contract.