Miami-Dade Florida Addendum for Continued Marketing of Property by Seller due to Contingencies
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A Hubbard Clause is an addendum or rider to a residential real estate purchase agreement that makes the purchase contingent upon the Buyer selling their own home first.
What is an appraisal contingency addendum? An addendum is a separate form that, once signed by the buyer and seller, becomes part of the sales contract. Appraisal contingency addendums are state-specific and allow buyers to move forward with their purchase under certain agreed-upon conditions.
If the Buyer elects to proceed with purchasing the Seller's property, there is a written waiver of the Hubbard Clause that must be signed by both parties; otherwise, the Seller has the right to void the agreement with the Buyer and return their deposit to them.
A Hubbard Clause is an addendum or rider to a residential real estate purchase agreement that makes the purchase contingent upon the Buyer selling their own home first.
So what is a Hubbard clause? Basically, it's a kind of right of first refusal. It means the seller has agreed to the terms of the buyer's offer, but the buyer doesn't have to buy unless either s/he sells his/her current home, or until another bona fide acceptable offer comes along.
Up until a contract is signed by both parties any other offers may be considered and accepted. However, once both parties have signed the contract the deal is locked in and legally binding. Sellers need to be absolutely sure of an offer before they commit.
Contingency clauses provide a way for one or both parties to back out of a real estate contract if certain specified conditions are not met. In other words, the sale is contingent upon these conditions.
Financing contingency This type of addendum is also known as a mortgage contingency. It protects the buyer in the case they cannot secure financing from a lender. Most financing contingency addenda include a time frame during which the buyer must secure financing.
Can the seller accept another offer while negotiating a contract with a first buyer? Absolutely. We have seen cases where the seller has accepted another offer after the buyer has signed the contract and sent the deposit. A seller can do that before they sign.
In fact, sellers can consider other offers even after they've accepted a contingent offer. If they get a new offer that they like, the contingent buyers can then drop their contingency and agree to buy the home without conditions. Otherwise, the sellers can accept the new offer.
