We, as real estate sales agents take for granted that we frequently use real estate “jargon” when referring to real estate contracts.
Well, I thought I would explain one for you. For example the phrase “Subject to a 48 hour clause” or “Subject to sale”.
When you want to purchase a property but you need to sell your home first you will be faced with a contract condition called a “48 hour clause”.
This clause in the contract means that the Offer & Acceptance for the purchase is subject to the sale of a home that you own. You are given 30 days to sell your home (with the clause on top) which is protection for the owner of the property you are buying.
In the event that the owner of the property you are purchasing, receives another offer, which can be conditional on finance or a cash which is unconditional offer, then you will be presented from the owners to “Envoke the 48 hour clause”. This means you have to make the decision to either go ahead with the deal (if you have sold yours or you got a bridging finance) and the owners can choose whether or not to take the deal within 48 hours notice.
It is not a complicated clause and it is a way to secure the property you really want to purchase if you can sell yours in the time frame prescribed.
It really can be a Win/Win situation for both parties and adds a little security too!
If you have any questions relating to buying or selling your home or perhaps a question regarding a sales contract, Just Ask!