Sale of Property Condition
Coordinating your purchase and sale

Sale of Property Condition - Bridge Your Transactions

The sale of property condition protects buyers who need to sell their current home before completing the purchase of a new one. This condition is essential when you need the equity from your current home for your down payment or to qualify for financing.

What is a sale of property condition?

This condition makes your purchase offer conditional on successfully selling your current property within a specified timeframe. If you cannot sell your property within the deadline, you can withdraw from the purchase without penalty.

When you need this condition

You need proceeds from your current home sale for the down payment
You cannot qualify for two mortgages simultaneously
You want to avoid owning two properties at once
Your current home must sell before you can move forward

How It Works

The basic process

Make an offer: Include a sale of property condition with a specific deadline
List your property: Put your current home on the market immediately
Market and show: Work actively to sell your property
Accept an offer: Once you receive an acceptable offer on your current home
Lift the condition: Notify the seller that your property is sold only when all conditions from your buyer are lifted on your property

Typical timelines

Sale of property conditions typically range from 30 to 90 days, depending on:

Current market conditions
Your property type and location
Seller's flexibility and timeline
Your negotiating position

Important considerations

Your property must already be listed: Some sellers require this before accepting your offer
All buyer conditions must be lifted: The condition is satisfied when all conditions from your buyer are lifted on your property
Timing coordination: Closing dates must align between both transactions

Challenges and Risks

Seller's perspective

From the seller's point of view, a sale of property condition presents risks:

Their property is tied up while you try to sell yours
They may miss other potential buyers
The timeline is uncertain
Your sale may fall through

Result: Sellers often prefer offers without this condition, or may negotiate a higher price to accept it.

Escape clause (72-hour clause)

Many sellers will include an escape clause that allows them to:

Continue marketing their property
Accept backup offers
Give you 72 hours (or another period) to remove your condition if they receive another acceptable offer
Move forward with the backup offer if you cannot remove the condition

Your risks

Pressure to sell quickly: You may need to accept a lower price on your property
72-hour deadline stress: If triggered, you have very little time to decide
Market conditions: Your property may not sell within the timeframe
Losing your dream home: If you can't sell in time, you must withdraw

Alternatives and Strategies

Bridge financing

A bridge loan allows you to access equity from your current home before it sells:

Short-term loan (typically 6-12 months)
Uses equity in your current home as collateral
Allows you to make a non-conditional offer
Higher interest rates than regular mortgages
Repaid when your current home sells

Selling first, buying second

The safest approach is to:

Sell your current home first (possibly with a longer closing period)
Arrange temporary accommodation if needed
Buy your new home with certainty and no conditions

Advantages:

Know exactly how much you have for down payment
Make stronger, non-conditional offers
No stress about timing or escape clauses

Disadvantages:

May need temporary housing
Moving twice
Storage costs
Risk of not finding a suitable new home immediately

Making your offer more attractive

If you must include a sale of property condition:

Have your property already listed and actively marketed
Show evidence of buyer interest or offers
Offer a shorter condition period if possible
Consider offering a higher price to compensate for the risk
Be prepared to act quickly if an escape clause is triggered

Le groupe UNITYReal estate broker,

Gatineau, QC

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EXP Realty

613 Bd Saint-Joseph, Gatineau, QC J8Y 4A6