More Than One Contract On A Property - Simultaneously
Has anyone ever put a "subject to prior sale" clause in their contract? Simply put: first one to the closing table wins. I wanted to know the wording of it or if it is merely stating this purchase sales agreement is subject to prior sale.
Thanks
I guess you could put in the special clauses or addendeum
Buyer understands that this Purchase and Sales contract does not give buyer an exclusive right to purchase the property. Seller may be entering into multiple non-exclusive sells contracts with the intention of selling the property as soon as possible to the first buyer that has the ability to close.
You could try it. Any real estate agent or attorney worth their salt will be able to put the clause into a purchase contract.
However, my thoughts are that you'll simply scare away anyone truly interested in the property, as no one wants to make a commitment to buy the property, pay loan fees, inspection fees, appraisals, etc, and then find out that someone else "beat them to the closing table."
Likely, all you'll get, if any, are very low cash offers with no commitment from the buyers either, ie no escrow deposits. Hardly a secure, or profitable, position in my book, but that may be what you are looking for in your offers.
Roger
It would be nice to know the context in which you intend to use the phrase.
Are you marketing a property as FSBO? Are you trying to purchase an option on a property that the seller is still marketing?
Is the property being offered by multiple owners, each working independently?
I wanted to know for a FSBO. I want the ability to sell my property to quickiest without having to tie up with one buy only to have something come up and not able to close. In sense, not putting my eggs all in one basket.
I agree with Roger. What you should do is make sure the buyer is qualified--by that I mean if the purchase is being financed, then get a pre-approval letter from the buyer's lender and a realistic (but lean) timeframe for issuance of the mortgage commitment. If the buyer's paying cash, get a BFI (buyer's financial) showing they have the funds to close. And in either case, down money at risk.
The phrase is meaningless in the FSBO context. As soon as you have a contract in hand (even with a contingency), you already have a prior sale when the next potential buyer already comes along.
Best to refuse contracts with either a financing contingency or a prior home sale contingency. Demand a huge deposit to ensure that you are adequately compensated if your buyer walks. To sell your property the quickest, set your asking price far enough below market value to attract attention.