In the current real estate market, we are definitely seeing many more conditional offers being accepted than last year; and one of the types of conditional sales I have started to see more of, are sales which are conditional with an escape clause. So, what is this, you ask?
Well, it’s a clause that allows a party to ‘escape’ or get out of a contract without penalty. Generally speaking, an escape clause can be used by either side of the transaction (buyers or sellers), and is protection to ensure that they aren’t stuck in a contract that isn’t acceptable for whatever reason.
What I’m currently seeing, are houses being sold conditional on the buyer selling their current property, and then, there is an escape clause. What this usually means is that the seller is still showing their home, and is willing to entertain other offers.
Why would a seller do this? Well, maybe they got a great price for their home, but want to protect themselves in case the conditional period is very lengthy.
Why would a buyer do this? Well, maybe they love the house and want to make sure they get it while they sort out their current home.
Obviously, there are many ways these clauses are drafted, and many ways they can be beneficial to both parties.
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