When a REALTOR® speaks about a time clause in Edmonton they are most often talking about a clause that is inserted into a buyer’s condition, where the offer is conditional upon the selling of their home. This is not an unusual clause, but its use is completely situational. For example, as a buyer you may lose negotiating position when you still have to sell your home and you include a “sale of buyer’s home” condition. That however is not the point of this article. The main topic is the amount of time that can be inserted into that clause.
For the better part of twenty years the most common amount of time I’ve seen used in this clause is 48 hours. If used with a common “subject to sale of home schedule” this means that the buyer would have 48 hours to remove all of their conditions if the seller accepted another offer from a different buyer.
When a buyer makes an offer, with a subject to sale clause, it may make more sense for them to have as much time as they can get. On the other hand, the seller doesn’t want to lose out on other offers, because other buyers may not want to go through the gut wrenching days waiting to find out if get the home of their dreams or not. As I tweeted earlier this week, we ran into a 72 hour clause where the seller’s agent also wrote the buyer’s offer.
As a buyer remember:
- The length of time for the clause is negotiable.
- It is completely situational and you should discuss your options with your REALTOR® to decide what’s best for you.
- You will probably lose negotiating power on other parts of the purchase contract (price, conditions, dates etc.) by including a subject to sale condition.
- Homes that have a time clause might be great opportunities because some buyers won’t take on the emotional risk of going after a property with a sale of home clause.
As a seller, consider the following before accepting and offer with a sale of buyer’s home condition:
- Is the buyers home in a more sellable price range than your home? Is it likely that the buyer’s home will sell?
- Would you as a buyer in today’s market compete for your home?
- A shorter amount of time is not always better, 48 hours is typically ideal.
- There are always other circumstances to consider and before accepting an offer with a time clause you should review all the options available with your REALTOR®.
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