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

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

Archive