Prior Sale Condition
1. This contract is subject to and conditional upon
(i) the Buyer obtaining a valid and enforceable contract for the sale (Sale Contract) of their property located at ___________________ (Sale Property) within ____ days of the Contract Date (Sale Period); and
(ii) such contract becoming unconditional within ____ days of the Contract Date (Unconditional Period); and
(iii) with a settlement date of no longer than ____ days from the Contract Date (Completion Date).
2. If the Buyer obtains a contract for sale of the Sale Property within the Sale Period then this Contract will be subject to and conditional upon the successful settlement of that Sale Contract.
3. The Settlement date of this Contract shall be the Completion Date of the Sale Contract under paragraph 1 of this Condition; OR
(i) Shall be ____ days from the Completion Date under paragraph 1(iii)
4. If the Buyer fails to give notice satisfying any of the requirements listed in paragraph 1(i) to 1(iii) by 5PM on their respective due dates, then either party may by written notice to the other party or their solicitor terminate this Contract, in which event the Deposit shall be refunded to the Buyer in full.
5. At any time prior to termination or Settlement of this Contract, the Buyer may by written notice to the Seller or their solicitor unilaterally waive the benefit of this Special Condition.
6. The parties may agree in writing to amend this clause.
A Special Condition Prior Sale is where a prospective purchaser would like to enter into a contract to buy a property, however has not yet sold another property of which the proceeds are required to finalize the purchase.
Another option to consider is Bridging Finance where a short term loan allows the transaction to be completed before you sell.
A seller may wish to agree to this clause, however may also like to keep their options open with a Sunset Clause as well.
Any party to a real property contract should seek legal advice prior to executing any documents and we are happy to help if you reach out to us.
