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

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

Archive