Realtor® Legal Tip – “Time Clause” refresher.
June 24, 2020
Author: Curtis Bullock
Let’s say you get an offer from the Buyer which is Subject to the Sale of her home and conditioned upon Financing, Appraisal and Due Diligence. Your Seller counters it and includes the “Time Clause” Addendum. You insert “72 hours” into the blank line in section 1.2 which gives the Buyer 72 hours to decide whether to remove the conditions. The offer including the Time Clause addendum is accepted and the property goes under contract.
Suppose a few days later a back-up offer is presented and the seller accepts it. Notice is given to the first Buyer and the 72 hours is triggered.
Question – if the first Buyer decides to remove the conditions, what conditions does the first Buyer have to remove?
Answer – It depends on how section 1.2 of the Time Clause Addendum was filled out. If all the boxes are checked in section 1.2 then the buyer must remove all the contingencies. Sometimes seller’s only check the “subject to sale” box. In that case, only that contingency must be removed in the event the seller receives a back up offer.