Many sellers will leave my office after signing their contract and start scheduling appointments to look at potential homes to purchase. If they happen to find the right home too soon, it may be risky to proceed to contract until the purchaser of their home has received an unconditional written mortgage approval. By entering into contract on their purchase prior to this, they could be bound to complete the purchase even if the purchasers of their home ends up getting rejected on their mortgage . If they were counting on the sale proceeds to purchase, they will now be in a potential breach of contract thereby risking their contract deposit.
The above scenario can be avoided by adding a contingency in their purchase contract which makes their purchase contingent on the sale of their present home closing. In the mid 2000’s there was little chance of such a contingency being allowed into a contract. However, in today’s buyers market, many more sellers are willing to allow the purchaser such a contingency since at least they feel they have a deal moving forward.
Obviously it is safer if they had waited for their purchasers to obtain mortgage approval before purchasing, but it is human nature to want to start looking at homes as soon as they sign a contract on the house they are selling. My advice….make sure your purchase contract contains a home sale contingency.
"My name is Emilio. When I was buying my property, I hired Mr William J Reinhardt Jr as my Real Estate Attorney, it was one of the best decision I ever made because he did everything in his power to make sure my purchase was successful. For example, The utilities bills left over by the person who owned the property before me. I said thank you to Bill for not allow me to pay these costly bills." - 5.0 stars | Posted by Emilio Bien Aime | October 1, 2019
"Mr. William Reinhardt Jr. is my lawyer for many years. My family and I bought and sold properties with his help and were very satisfied. I recommend Mr. Reinhardt to anyone. I give him a 5-star review." - 5.0 stars | Posted by Diana | September 19, 2019
"My husband and I loved working with William. He was very professional, efficient and went above and beyond to help us. We would HIGHLY recommend." - 5.0 stars | Posted by Leeann | September 13, 2019