DGAA bLAWg

Home Sale Contingencies in Real Estate Contracts

Web Admin - Thursday, April 10, 2014

illinois real estate contingencies lawyerBuying a new home is a complicated task that requires a lot of pieces to fall into place in just the right way. For many people, one of these pieces is the ability to sell their current home. Often, people need to sell their old home first to make sure they have enough cash on hand to afford the new one. Of course, sometimes that is not feasible, and people will want to put an offer down on a new house before they have managed to sell their old one. When this happens, people can use a “home sale contingency” clause in their contract to purchase the new home. In short, a home sale contingency clause voids the contract for the sale of the new house in the event that the buyer is unable to sell their old one.

Types of Home Sale Contingencies

There are two broad types of home sale contingencies that lawyers can build into a contract: a “sale and closing contingency” and a “closing contingency.” The sale and closing contingency is used in the event that the buyer has yet to find a prospective buyer for their own home. Conversely, buyers use closing contingencies when they have a prospective buyer who has made an offer for their home, but the sale has not yet closed. In this instance, the contingency acts as an insurance policy against the sale of the buyer’s home falling through at the last minute. While these two types of clauses function in largely the same way, both of them voiding the sale of the new house if the old one does not sell, the sale and closing contingencies are more likely to include a “kick out” clause.

Kick out clauses are a right of first refusal. They allow the seller to keep searching for other buyers for the house. In the event that one of these other buyers makes an offer, then the seller must notify the first buyer. The first buyer then has some period of time to sell their house or else the seller is allowed to make the sale to the new buyer instead.

Factors to Consider When Using a Home Sale Contingency

Buyers should consider two things when deciding whether to ask for a home sale contingency: the effect it will have on the new home’s price and the other costs of purchasing a house. For the first point, home sale contingency clauses will likely drive the price of the new home up. The buyer is asking the seller to take the risk that the buyer’s old home will not sell, and the seller will likely want compensation for bearing that risk.

For the second point, buyers can still end up sinking other costs into the attempted purchase of the new home. They can end up paying for things like home inspections, appraisal fees, and the like, even before they have sold their old house. In the event that the buyer fails to sell their home, then they have wasted any money spent on such things.

If you are in the market for a new house, find an Illinois real estate attorney to help ensure that you receive strong, fair contracts. We serve towns all across northwest Chicago including Palatine, South Barrington, and Mount Prospect.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


Tags

insurance claim construction accidents coronavirus Liquor Control Act modern family estate planning digital evidence Deer Park medical malpractice attorney jet ski medical marijuana Schaumburg personal injury lawyer preventing accidents clemency installment contracts Illinois Transfer on Death Instrument expungement Schaumburg drug defense lawyer loss of consortium Inverness accident lawyer life insurance denial of life insurance Arlington Heights wills and trusts attorneys Barrington civil litigation attorney Rolling Meadows Attorney corporate law Illinois bicycle safety drug crimes lawyer Illinois medical malpractice lawyers pizza emoji Arlington Heights personal injury attorney Inverness insurance attorney Fair Labor Standards Act Employment Discrimination Law medical malpractice compensation license reinstatement Inverness civil lawyer commercial leases Illinois investment property crossover accidents Schaumburg real estate lawyer independent contractor fiduciary rule delay Arlington Heights lawyer insufficient documentation Barrington workers compensation attorney accidental death benefits anesthesia errors nursing home negligence Arlington Heights TBI attorney Crystal Lake law firm dram shop law probate process ACA Rolling Meadows personal injury lawyers Barrington injury attorney paid sick leave advance healthcare directive liability Schaumburg civil litigation attorney Rolling Meadows drug defense attorney Schaumburg employment law attorneys Home Remodeling Repair Act Attorney Ken Apicella Barrington boating accident attorney Palatine civil attorney Illinois wills and trusts natural gas Fourth of July DUI defense Des Plaines pet law attorney medical research car accident lawyer insurance claim denial insurance negligence Inverness elder law lawyer how to avoid common denials of life insurance claims Des Plaines accident attorney natural gas explosion Arlington Heights estate planning attorney Crystal Lake car accident lawyer murder charges Arlington Heights insurance attorney Crystal Lake medical malpractice attorneys rest breaks cell phone accidents Kenilworth estate planning lawyer liability claims product liability unauthorized overtime Inverness corporate attorney Long Grove estate planning attorneys unpaid overtime Rolling Meadows medical malpractice lawyers capital gains tax underfunded trust medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers Schaumburg injury lawyer medical malpractice claims Mount Prospect elder law attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, Self-Directed IRA Accounts Joliet general practice lawyers Schaumburg life insurance attorney Schaumburg criminal law attorney Illinois real estate insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys landlord tenant law hiring employees senior citizens traffic tickets Palatine probate lawyer Chicago employment attorney no contest clauses Chicago car accident lawyer swimming pools irrevocable trust living trust caretaker rights Illinois will lawyer Super Mario Long Grove estate planning attorney condo car accident lawyers food poisoning Rolling Meadows real estate attorney Class A misdemeanor Palatine Attorney Crystal Lake personal injury lawyer Schaumburg medical malpractice lawyer traffic violations defense Buffalo Grove personal injury lawyer probate claims process Buffalo Grove life insurance attorney Arlington Heights Attorney Des Plaines personal injury lawyer Long Grove estate planning Crystal Lake employment lawyer Illinois employee rights attorney. Illinois boating accident lawyer criminal criminal defense top life insurance claim denials field sobriety test Rolling Meadows personal injury attorney real estate leasing Rolling Meadows corporate lawyer Barrington Traffic Lawyer real estate financial advisors Rolling Meadows personal injury lawyer Crystal Lake tax lawyer slip and fall accidents real estate attorney Illinois employment law attorney insurance denial appeals filing a medical malpractice claim insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Schaumburg corporate attorney most common reasons for life insurance claim denials South Barrington real estate attorney denied insurance claim ken apicella DUI penalities Deer Park real estate law firm Home Sale Contingencies pedestrian-automobile accident subcontractor Des Plaines civil attorney Illinois Trust Code comparative negligence Buffalo Grove criminal defense lawyer Illinois business lawyer real estate zoning Mount Prospect real estate lawyer Palatine construction attorney Palatine law firm Barrington Illinois estate planning lawyer Rolling Meadows criminal attorney drug crime Rolling Meadows employment law attorneys Illinois trucking safety defective products probate fees pay when paid contract estate tax Illinois trusts attorney income distribution deducation Barrington criminal lawyer Palatine insurance lawyer Schaumburg auto accidents Policy Cancellation mass shooting Chicago will attorney, social media platforms, Illinois estate planning lawyer, slip and fall Illinois living will bike accident suspended license workers compensation benefits agent Schaumburg estate attorney Crystal Lake medical malpractice lawyer Deer Park motorcycle accident lawyer Rolling Meadows insurance lawyer Schaumburg Attorney surgical mistakes insurance dispute attorney health insurance dispute employees Palatine criminal defense lawyer traumatic brain injuries insurance claim denials Illinois Workers’ Compensation Commission revenge porn Palatine personal injury lawyer employment law TBI traumatic brain injury personal injury attorney startup company Jay Andrew manufacturing workplace sexual harassment foreclosed rental property Palatine estate planning lawyer overtime pay FMLA probate lawyer employee misclassification Illinois red light cameras IRA benefits Crystal Lake employment law attorney Illinois workers compensation attorney Rolling Meadows boating crash lawyer Illinois insurance attorney Rolling Meadows business lawyer Chicago estate planning Chicago lawyer overtime violations personal injury law firm BAIID real estate attorneys deed transfer employee discrimination PTSD Des Plaines drug crimes lawyer Schaumburg wrongful death attorney caregiver Rolling Meadows insurance attorney wills problem employees DUI Illinois personal injury license suspension Long Grove real estate attorney Barrington personal injury attorney insurance agents Des Plaines collections attorney Illinois driving without license Illinois insurance claim attorney Illinois traffic attorneys insurance agent negligence Family Medical Leave Act Crystal Lake medical malpractice law firm Deer Park personal injury lawyer Arlington Heights employment law attorneys Chicago insurance law firm Arlington Heights trucking lawyer Palatine traffic accidents Chicago employment lawyer Crystal Lake personal injury attorney Crystal Lake car accident attorney privacy laws Buffalo Grove traffic lawyers employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Chicago traffic lawyer Palatine employment attorney Des Plaines tax law firm estate plan Illinois insurance disputes material misrepresentation real estate closing Palatine workers compensation lawyer deadly crashes insurance claim dispute Barrington drug crime attorney Illinois traffic laws Chicago corporate attorney Des Plaines medical malpractice attorney breathalyzer test CAM rollover accidents llinois Real Estate Lawyers Association Chicago trucking accident attorney IRELA Barrington employment law attorney IRS Rolling Meadows marijuana attorney estate attorney Illinois corporate lawyer Illinois job attorney bicycle accidents Palatine real estate lawyer ObamaCare Arlington Heights employment attorney insurance claim dispute attorney condo association power of attorney Whistleblower Claims murder drug possession Crystal Lake pet attorney car crash injuries insurance disputes Crystal Lake criminal defense attorney workers comp premises liability traffic laws Des Plaines insurance attorney Federal Food Drug and Cosmetic Act Buffalo Grove insurance claim dispute lawyers new real estate form Illinois insurance claims lawyers Arlington Heights traffic attorney Des Plaines real estate attorney involuntary manslaughter Illinois insurance dispute lawyers Illinois DUI attorney Arlington Heights criminal lawyer Illinois traffic accident lawyer elder abuse Des Plaines eluding a police officer motorcycle accident controlled substance Deer Park DUI lawyer brain injury traffic offenses Inverness personal injury attorney distracted driving accident victims mortgage commercial real estate creditors Illinois pet lawyer construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Illinois insurance lawyer foreclosure Illinois rollover accident lawyers taxes dog bites Illinois probate lawyer pregnant women Illinois medical malpractice case Illinois medical malpractice claim Buffalo Grove law firm Barrington personal injury lawyer Barrington real estate lawyer college kids Chicago will attorney Arlington Heights injury attorney insurance adjusters Arlington Heights medical malpractice lawyer Arlington Heights wills and trusts lawyers Barrington estate planning attorney estate planning for college students consent to a search Des Plaines claims law firm Retaliatory Discharge Crystal Lake traffic lawyer rollover car crashes Arlington Heights pedestrian accidents wills and trusts automated cars Illinois law digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers special needs trust Chicago attorney LLCs Barrington employment attorney Schaumburg elder law lawyer cell phone tower data Mt Prospect Attorney Inverness real estate attorney civil litigation BAC compensatory time blended families trench injuries Palatine injury attorney Rolling Meadows car accident lawyers Arlington Heights Traffic Lawyer Buffalo Grove employment lawyer Chicago insurance claim attorneys vacation home head on collisions fault based insurance Illinois construction accident attorney employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, estate planning attorney golf accidents Illinois employment lawyer Schaumburg probate attorney car collision Landlord Tenant Ordinance pedestrian accident first degree murder appealing an insurance claim Deer Park traffic accident attorney tax attorney drunk driving statistics Arlington Heights wills and trusts lawyer commercial leasing insurance dispute loopholes Illinois estate planning law firm gift taxes Illinois small business Chicago life insurance attorney Buffalo Grove probate lawyer Illinois employment law personal injury claim Illinois elder law attorney pedestrian injuries, pedestrian fatality drugs Illinois attorney car accidents Barrington criminal defense lawyer Kenilworth estate planning attorney Illinois speeding lawyer Palatine employment law lawyer Long Grove wills and trusts attorneys Illinois employment law attorneys Illinois criminal defense attorney Rolling Meadows DUI lawyer digital assets landlord Legal Info Illinois traffic ticket lawyer products liability gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys boating DUI Rolling Meadows life insurance claim denial attorney distracted driving accidents Des Plaines personal injury lawyers contracts Illinois motorcycle accident lawyer Des Plaines personal injury attorney breach of contract Palatine business attorney marijuana crimes attorney Barrington estate planning lawyer Crystal Lake business law attorneys Crystal Lake injury attorney car crash estate planning boating under the influence probate claims internet Rolling Meadows insurance dispute lawyers, insurance dispute Illinois Smoke Detector Act Food and Drug Administration's Food Safety Modernization Act Schaumburg employment attorney criminal law unpaid assessment icy parking lots Arlington Heights personal injury lawyer privacy denied insurance claims liens Rolling Meadows Traffic Lawyer driving workers compensation boating accidents Illinois Sales Representative Act Inverness estate planning lawyer Barrington medical malpractice lawyers wrongful death personal injury lawyer car crashes Illinois collections attorney Buffalo Grove personal injury attorney Buffalo Grove traffic attorney employment attorney Des Plaines DUI attorney pain and suffering homestead rights Palatine elder law attorney Kenilworth estate planning attorneys dealing with problem employees fatal car accidents life insurance lawyer Schaumburg personal injury attorney DMV Illinois personal injury lawyers Deer Park employment law attorney jet ski accidents life insurance claims Inverness real estate lawyer operating agreements right to work Forcible Entry Illinois tax attorney dynasty trusts living trust vs will Buffalo Grove injury lawyer Crystal Lake insurance lawyer pedestrian accidents Rolling Meadows accident lawyer Palatine traffic lawyer insurance denials Rolling Meadows criminal lawyer Crystal Lake accident attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Schaumburg criminal attorney power of attorney for healthcare personal injury claims Buffalo Grove real estate attorney hands free device guardianship attorney life insurance policy Buffalo Grove car accident lawyer Rolling Meadows employment attorney Buffalo Grove medical malpractice lawyers estate planning trusts Schaumburg estate planning attorney meal breaks texting while driving Inverness traffic law firm Inverness DUI lawyer work unions Des Plaines motorcycle accident attorney federal crimes vacation home fines Schaumburg construction accident lawyer Des Plaines Traffic Lawyer Arlington Heights wills and trusts attorney Des Plaines drug lawyer cause-of-death exclusions home inspection lawyer business litigation uninsured motorist trustee Arlington Heights accident attorney Illinois lawyer employment contract probate spinal cord injuries Illinois workplace discrimination attorney Palatine corporate law attorneys Colin H. Gilbert residential real estate wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace car accident Illinois insurance claim dispute lawyers traffic crimes Illinois mortgages Colin Gilbert hit and run accident rent to own real estate contracts Schaumburg car accident attorney Illinois medical malpractice attorney Illinois employment law firm Rolling Meadows estate planning attorney defective products lawyer Crystal Lake traffic attorney Thanksgiving Chicago estate planning lawyer sexual images insurance attorney Illinois car accident attorney Illinois pedestrian accident attorney Palatine civil litigation lawyer Crystal Lake civil litigation lawyer preventable medical errors Exclusions attorney fees Illinois registered agent Schaumburg personal injury lawyers federal regulations for LLCs Rolling Meadows probate lawyer Buffalo Grove corporate attorney Des Plaines real estate lawyer Crystal Lake employment attorney Illinois Wage Payment and Collection Act small business whistleblower protections beneficiary complications personal injury accidents healthcare claims estate planning lawyer Deer Park accident attorney job lawyers real estate lawyer Chicago biking tips real estate contract Illinois workers compensation lawyer employment lawyer insurance claim delay Riverwoods estate planning lawyer Rolling Meadows traffic attorney life insurance claim denial, denial of life insurance claim Arlington Heights real estate lawyer blood alcohol content drug crimes Crystal Lake estate planning lawyer Palatine corporate attorney Palatine trusts lawyer bicycle dooring accidents digital information Palatine employment lawyer speeding healthcare Deer Park workers compensation lawyer Detainer Actions Barrington business law firm texting and driving medical malpractice Illinois insurance claim dispute lawyer rumble strips in terrorem provision social media after death Rolling Meadows litigation lawyer civil litigation attorney Des Plaines criminal attorney Illinois Human Rights Act Illinois jet ski accident lawyer Illinois home inspection Crystal Lake will lawyer child safety forming a corporation in Illinois low-ball insurance settlement unfunded trust Illinois real estate lawyer sole proprietorship sexual harassment traffic deaths estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Barrington attorney School Visitation Rights Act cell phone pet law lapse in policy marijuana drunk driving owner responsibility Rolling Meadows Illinois LLC creation fiduciary rule Illinois workplace lawyer medication errors Illinois defective products attorney GM ignition switches Palatine drug lawyer motorcycle accident lawyer comp time Illinois traffic attorney reckless homicide Palatine life insurance lawyer trucking accidents Illinois employment attorneys pet bites Arlington Heights car crash attorneys BUI Palatine punch death elder law license Illinois civil litigation lawyer Crystal Lake bike accident lawyer personal injury estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Illinois business law atorneys Deer Park traffic lawyer Transfer on Death Instrument Schaumburg traffic lawyer IRA trust transfer employee rights Arlington Heights car accident lawyer Barrington litigation attorney traffic accidents Schaumburg insurance lawyers Rolling Meadows insurance dispute lawyers Arlington Heights tax lawyer Mount Prospect wills and trusts lawyers Illinois wrongful termination lawyer holiday statistics bad faith insurance claims license revocation Illinois employment laws living wills South Barrington real estate lawyer murder defense Rolling Meadows tax attorney FSLA employment law, Illinois employment laws trusts back injuries Deer Park criminal attorney Rolling Meadows employment law attorney Do Not Resuscitate insurance claims Inverness injury lawyer Barrington life insurance lawyer Illinois personal injury lawyer changes to mortgage law Rolling Meadows traffic law firm Illinois Probate Act of 1975 Illinois wills and trusts attorneys POA Schaumburg estate planning lawyer living trust benefits criminal record spinal cord injury denial of insurance claim trust payments wage theft disability benefits traffic violations underage DUI underinsured motorist institutional trustee DNR trauma after an accident Illinois injury lawyer construction contracts Barrington employment law firm Inverness probate lawyer DUI attorney civil rights violation wrongful termination Affordable Care Act Illinois personal injury attorney minimum wage DGAA Long Grove real estate lawyer truck collisions severance agreements Crystal Lake pedestrian accident lawyer Illinois estate planning Illinois estate planning attorney Crystal lake insurance dispute attorney trucking accident lawyers Des Plaines injury law firm

Archive