Something that’s been coming up with my buyers and sellers lately has been the sale of the buyer’s property.
So if the buyer needs to sell their home to buy a home, they can put in a condition called an SBP or an SPP or an SOP, depending on where you are.
Here in Kingston and the area standard is the Sale of Buyers Property.
So that means the purchase of this home is conditional upon the sale of me, the buyer’s property. And there’s a timeline there. It could be two weeks or two months in which the buyer has to sell their property.
But because it’s such a long timeline, there’s an escape clause.
An escape clause is a 24 to 72 hours period, wherein if the sellers get another offer, they can inform the first buyers and say, “Hey, we have another offer. We’d like to take that offer. So you have to commit or let it go.”
So at that point, the buyers either say,
“Okay, I’m letting my condition go. I’m waiving my condition.”
“I am escaping getting out of the house, not buying this house.”
So that’s what a Sale of Buyers Property is.
The sellers don’t love it because there’s no total commitment to buy the house, and they’re sitting there waiting, tied up with you to ensure you will sell before you commit to purchasing their home.
Buyers, sometimes it’s the only way, but it depends on the market whether, whether it’s used or not.
Watch the video here