As professional real estate agents, working with legal documents related to property sales becomes second nature. What we sometimes fail to realise is that our customers are not used to dealing with some of the terminology used in sales contracts.
To help turn this jargon into something that finally makes sense, I want to explain what is meant by adding a 48 hour clause to a sales contract.
The 48 hours clause
The phrase “ make an offer subject to 48 hours” has the potential to make some buyers suspicious but don’t worry, it is there as a protection mechanism to help safeguard both the buyer and seller in a sales contract.
It helps the buyer by allowing them the chance to purchase their dream property, even though their own property may not have sold yet. The introduction of this clause into the sales contract means that you can only commit to the sale if your property sells within the allotted time frame – usually 30 days.
It protects the seller by assuring them they have a genuine buyer for their property. It also allows them the opportunity to sell the property to another buyer who might not need to dispose of an existing property in order to purchase this one.
If this is the case then the seller is required to give the first purchaser 48 hours notice to check if the buyers property has been sold or to arrange bridging finance so the sale can still go ahead as per the contract conditions.
The 48 hour clause is not a complicated clause – it is very straight forward and offers the seller good options and protection as well as offers the buyer a way to secure their dream property provided they can sell theirs in a reasonable time frame.
If you have any questions relating to buying or selling your home or perhaps a question regarding a sales contract, Just Ask! Fill out the quick question form and I’ll get back to you with an answer shortly.