Definition
The sale condition (or offer conditional on resale) allows a buyer to protect their offer against the risk of owning two properties simultaneously if their current property does not sell.
**How it works**: 1. The buyer makes an offer conditional on the sale of their current property within X days (e.g., 60 days) 2. If the property sells within the period → the buyer waives the condition and the transaction proceeds 3. If the property does not sell → the buyer can withdraw without penalty and recovers their deposit
**Right of continuation clause (kick-out)**: The seller may include a kick-out clause to protect themselves: - If a second firm offer arrives → the seller notifies the conditional buyer - The buyer has 24-72 hours to waive the condition (without having sold their property) or withdraw - The buyer must then decide: waive hoping to sell quickly, or pull out
**Bridge financing**: If the buyer waives the condition before having sold their property → they need a bridge loan to finance the period between the two transactions.
**Acceptability by sellers**: - Seller's market (low inventory): sellers reluctant to accept sale conditions - Buyer's market (high inventory): sellers more open - Real estate brokers often advise selling first to avoid this condition