Home sale contingency
A contract term that makes the purchase depend on the buyer selling their current home. Sellers often accept it only with a kick-out clause.
Also called: sale of home contingency, house to sell contingency, home sale clause
Related terms
A condition in the contract that must be met for the sale to go forward, such as an inspection, loan approval or appraisal. If it fails within the deadline, the buyer can usually cancel and keep the earnest money.
A clause that lets the seller keep marketing the home after accepting a contingent offer. If a better offer comes in, the first buyer gets a short window to remove the contingency or step aside.
A homeowner selling their current home to buy a bigger or pricier one. Timing both sales often means a home sale contingency, bridge loan, or rent-back.
A short-term loan that uses the equity in your current home to buy the next one before the first sells. It costs more than a regular mortgage and is repaid when the old home sells.
An agreement letting the seller stay in the home for a set time after closing, usually paying rent or a daily fee. It helps sellers who need time to move.