Contributed by Christina Accumanno
If you’re in the market to purchase a new home, you may be wondering how you can contract to purchase a home when you need to sell your current home to qualify for a mortgage. That’s where a Hubbard Clause may be helpful to you.
By ensuring a Hubbard Clause is included as part of the contract, you as the purchaser can contract to purchase a new home by making the purchase contingent upon the sale of your current home. But how does this work? The Hubbard Clause typically states a date (at the agreement of both parties) by which you as the buyer must have a contract for your current home. During this time, the sellers are still able to market their property, but you can get first right of refusal. If the sellers get another offer during this time period, you have a certain amount of time (again, determined at the agreement of all parties) at which point to respond.
Instead of having to wait until you have a contract for the sale of your current home before entering a contract to buy the new of your dreams home, you can act simultaneously. A Hubbard Clause is especially helpful when you have found the perfect new home and don’t want to miss the opportunity to buy it simply because you haven’t yet found a buyer for your current home.
Don’t have a signed contract yet and thinking a Hubbard Clause may help you? Brown, Paindiris and Scott, LLP can assist with all your real estate needs. Contact us today.