TV house sold on contingency?

[angel222]

Im thinking of downsizing within TV....has anyone ever done this using the contingency of sale of first house to buy second home. In my home state, I sold a home to someone contingent on the sale of their house --- this was years ago and I don't know if its done anymore or if this is used in Florida. Since both homes would be in TV I thought someone might have done this before. Would appreciate any comments...

Thanks

[OpusX1]

You may be able to have a contingent contact on a pre-owned if the owner/seller agrees but they will not take any contingencies on a new build.

[Sadie1313]

You may be able to have a contingent contact on a pre-owned if the owner/seller agrees but they will not take any contingencies on a new build.

We bought our pre-owned home in the Village of Amelia. We had airline tickets, for 5 days after we signed the contract, to go home to New York, where we were in Contract to sell our home there. Our contract here in The Villages, was "Contingent" on the sale of our home in New York. The morning after we got home, we got a call from our Real Estate person in The Villages. He informed us that the owners of the home in Amelia, had been showing the home we were "In Contract" with, during the 5 days we were still in The Villages....this being after we and they, signed the sontract. He stated that since our contract read "CONTINGENT UPON THE SALE OF OUR HOME IN NEW YORK", the owners here were legally allowed to show the home, without telling us, while we were there for the extra 5 days. They got an offer for a higher amount. We were told be had 72 hours to do two things....1st, meet the additional amount, and 2nd, take out the contingency from the contract. This is called a DROP OUT CLAUSE". The theory being if we kept in the contingency, and our sale in New York fell through, we'd be able to get our deposit back. So, the owners want to have a backup also, so if we get our deposit back, then they have the right to show the house, get someone else, and give us the choice to meet the higher price AND also take out the contingency. This was not told to us when we put the contingency in the contract, and had the owners of the home sign it. Needless to say, we DID NOT go through with the sale. We felt violated, and did not feel this was a good start for this sale. Please make sure to ask about this DROP OUT CLAUSE" BEFORE YOU GO AHEAD WITH ANY CONTRACT. We're happily living in Buttonwood now. I guess things do happen for a reason. Good luck with your new home. Trish

[gomoho]

I am 100% confident this was spelled out in the contract. Sorry for your experience.

[Duvalboomer]

We bought our pre-owned home in the Village of Amelia. We had airline tickets, for 5 days after we signed the contract, to go home to New York, where we were in Contract to sell our home there. Our contract here in The Villages, was "Contingent" on the sale of our home in New York. The morning after we got home, we got a call from our Real Estate person in The Villages. He informed us that the owners of the home in Amelia, had been showing the home we were "In Contract" with, during the 5 days we were still in The Villages....this being after we and they, signed the sontract. He stated that since our contract read "CONTINGENT UPON THE SALE OF OUR HOME IN NEW YORK", the owners here were legally allowed to show the home, without telling us, while we were there for the extra 5 days. They got an offer for a higher amount. We were told be had 72 hours to do two things....1st, meet the additional amount, and 2nd, take out the contingency from the contract. This is called a DROP OUT CLAUSE". The theory being if we kept in the contingency, and our sale in New York fell through, we'd be able to get our deposit back. So, the owners want to have a backup also, so if we get our deposit back, then they have the right to show the house, get someone else, and give us the choice to meet the higher price AND also take out the contingency. This was not told to us when we put the contingency in the contract, and had the owners of the home sign it. Needless to say, we DID NOT go through with the sale. We felt violated, and did not feel this was a good start for this sale. Please make sure to ask about this DROP OUT CLAUSE" BEFORE YOU GO AHEAD WITH ANY CONTRACT. We're happily living in Buttonwood now. I guess things do happen for a reason. Good luck with your new home. Trish

This seems standard to me. In most states it's perfectly legal to continue to show a house that has any sort of contingency on the sales contract and if a better offer is received either in form of price or contingency to require the original buyer to remove all contingencies.

[philnpat]

In NY it's called a 72 hour contingency. It's exactly as you explained it in your post.

[foxmeadow]

In NY it's called a 72 hour contingency. It's exactly as you explained it in your post.

However, once the standard contingency clause is removed, all other terms remain the same. The sellers may not request more money unless the original language had such a clause included.

[fb32162]

you can sell on this type of contingency in TV, however, given the market and the ease of selling a home in TV, I would be surprised if a seller would accept an offer like this. If your offer is high enough to make it worth their while to take the chance, they may accept this type of offer. We sold a house in TV in 4 months ago within a week of listing for full asking. We would not have accepted an offer that had a contingency that the buyer had to sell their home.

[Phanatic Luvr]

I'm sorry, I just don't understand why any seller, especially here in The Villages, would accept an offer with such a contingency.
First, the seller would be taking their home off the market for a sale that may never happen???? Let's reverse the situation, put yourself as the seller. Would you do that for someone you don't know? I doubt it.
Second, the market here in The VIllages is very strong compared to most areas in the country. There are a lot of good, strong buyers coming into The Villages every day, so to take your home off the market for a "maybe" sale, just doesn't make good business sense.
Third, the seller has no knowledge or control over the sale of anothers home in another state. A few examples which come to mind are: What if the home was overpriced and it does not appraise? What if there was a contingency on that contract? What if the home was in disrepair and there was a home inspection clause which could possibly cancel the contract?
If you were buying in The Villages and could not afford to carry two homes in the event that yours didn't sell, you may want to sell yours in another state first and rent here in TV's for a bit until you find exactly what you want.
Don't blame the seller, they were the one's using common sense in this business dealing.

[gjbl8114]

I am certain that your post was written to warn others of such a stressful possibility, however, it should be noted that contingency sales are in fact, a CHAIN sale by any other name. A Chain sale is never a good idea regardless of the situation for neither the buyer or the seller. It puts both in a situation that neither would like to be. IMO, it would be safe to say that a sale with such a contingency is a sale that probably shouldn't take place in the first place. It is always a better idea to sell an existing property before getting too involved in the purchase of another - especially if it will cause financial hardship. TV's sales people are always anxious to sell properties, and new buyers, especially those who are immediately and impulsively impressed with the lifestyle of TV's are eager to buy. Common sense should kick in at some point and as a previous poster has indicated, you should consider how you would feel if the shoe were on the other foot. Good advice is to not let your impulsive overwhelming desire to purchase in TV's outweigh your common sense.

[Sadie1313]

However, once the standard contingency clause is removed, all other terms remain the same. The sellers may not request more money unless the original language had such a clause included.

Well, unfortunately we didn't know about this type of clause, and our realtor, said "Oops, sorry I thought I told you" LOL. Anyway, he said we had to meet both thins....first take out the contingency and second, pay the higher offer. Like I said earlier, we were initially very upset, but now we're very happy this happened. We're in Buttonwood, and have made some wonderful friends, and we love our home. Trish

[Sadie1313]

I'm sorry, I just don't understand why any seller, especially here in The Villages, would accept an offer with such a contingency.
First, the seller would be taking their home off the market for a sale that may never happen???? Let's reverse the situation, put yourself as the seller. Would you do that for someone you don't know? I doubt it.
Second, the market here in The VIllages is very strong compared to most areas in the country. There are a lot of good strong buyers coming into The Villages every day, so to take your home off the market for a "maybe" sale, just doesn't make good business sense.
Third, the seller has no knowledge or control over the sale of anothers home in another state. A few examples which come to mind are: What if the home was overpriced and it does not appraise? What if there was a contingency on that contract? What if the home was in disrepair and there was a home inspection clause which could possible cancel the contract?
If you were buying in The Villages and could not afford to carry two homes in the event that yours didn't sell, you may want to sell yours in another state first and rent here in TV's for a bit until you find exactly what you want.
Don't blame the seller, they were the one's using common sense in this business dealing.

What you're saying is very valid. However, the sellers knew all about this. We told them we were in contract, that the people were paying us cash, and they agreed, and signed the contract. They never hesitated for a minute. That's what got us. The funny thing though, is that we really liked this house in Buttonwood, it was brand new, and we liked many things better. We decided to take the one in Amelia, because I was totally overwhelmed with the size of The Villages, and was afraid I'd never find my way arounnd. The home in Amelia, was closer to Colony for shopping. I paniced, and that's how that happened. Things worked out, and we're happy. Thanks for your comments. Trish

[Sadie1313]

I am certain that your post was written to warn others of such a stressful possibility, however, it should be noted that contingency sales are in fact, a CHAIN sale by any other name. A Chain sale is never a good idea regardless of the situation for neither the buyer or the seller. It puts both in a situation that neither would like to be. IMO, it would be safe to say that a sale with such a contingency is a sale that probably shouldn't take place in the first place. It is always a better idea to sell an existing property before getting too involved in the purchase of another - especially if it will cause financial hardship. TV's sales people are always anxious to sell properties, and new buyers, especially those who are immediately and impulsively impressed with the lifestyle of TV's are eager to buy. Common sense should kick in at some point and as a previous poster has indicated, you should consider how you would feel if the shoe were on the other foot. Good advice is to not let your impulsive overwhelming desire to purchase in TV's outweigh your common sense.

In hindsight, I totally agree. As the saying goes, "You live and learn".. We didn't know anything about contingencys, and didn't really know about Real Estate laws, etc. When we bought our home in New York, we had a trusted family friend as our attorney, and let him handle the legal end of things. I doubt that we're ever going to move again. But if we do, we'll be alot smarter, and less impulsive. I actually did write this post in response to someone asking about Contingencys. It was to warn them that it wasn't a good idea. So, as you can see, I do agree with all of you that posted that it was not good for either the buyer or the seller. Thanks for all your comments. I hope the original poster has learned from this. Trish

[gustavo]

We were told be had 72 hours to do two things....1st, meet the additional amount, and 2nd, take out the contingency from the contract. Good luck with your new home. Trish

Pretty sure you had to do ONE of two things, either pony up more than the new offer or remove your contingency. Had the contingency been removed you would have gotten it at your original agreed upon price.

[KathieI]

Personally, I would never accept an offer on my house here in TV on a contingency basis. Houses move too fast and we are not in a bad market. Two houses here in my village have sold in a matter of days and both were designers and were not cheap.

Also, If I owned a CYV for sale, I've observed that most are sold almost immediately as soon as they are listed. Therefore, a contingency would never work for a CYV seller, this is my opinion.

[TraceyMooreRN]

[QUOTE=Phanatic Luvr;706770]I'm sorry, I just don't understand why any seller, especially here in The Villages, would accept an offer with such a contingency.
First, the seller would be taking their home off the market for a sale that may never happen????

Actually--when there is a contingency; The Seller does not take the house off the market. That is where I believe the realtor representing the buyer failed to disclose (or make clear). Under no circumstances that I have ever seen (was Realtor in VA 14 years) does the seller obligate themselves for something that "might" happen. :read:

[rubicon]

Selling a house based on a contingency to me is like getting married with a prenuptial agreement. If a prospective spouse said to me we can get married but I want a prenup...well to me that is a bad sign. Exceptions to my rule of course would include where it is a 2nd marriage and the couple agree that what they accumulated in asset prior to their marriage would go to children, etc and what they accumulated during their marriage was equally divided by all heirs. Exceptions to the exceptions some rich person who continues to turn over spouses .

[3puttharry]

We bought our pre-owned home in the Village of Amelia. We had airline tickets, for 5 days after we signed the contract, to go home to New York, where we were in Contract to sell our home there. Our contract here in The Villages, was "Contingent" on the sale of our home in New York. The morning after we got home, we got a call from our Real Estate person in The Villages. He informed us that the owners of the home in Amelia, had been showing the home we were "In Contract" with, during the 5 days we were still in The Villages....this being after we and they, signed the sontract. He stated that since our contract read "CONTINGENT UPON THE SALE OF OUR HOME IN NEW YORK", the owners here were legally allowed to show the home, without telling us, while we were there for the extra 5 days. They got an offer for a higher amount. We were told be had 72 hours to do two things....1st, meet the additional amount, and 2nd, take out the contingency from the contract. This is called a DROP OUT CLAUSE". The theory being if we kept in the contingency, and our sale in New York fell through, we'd be able to get our deposit back. So, the owners want to have a backup also, so if we get our deposit back, then they have the right to show the house, get someone else, and give us the choice to meet the higher price AND also take out the contingency. This was not told to us when we put the contingency in the contract, and had the owners of the home sign it. Needless to say, we DID NOT go through with the sale. We felt violated, and did not feel this was a good start for this sale. Please make sure to ask about this DROP OUT CLAUSE" BEFORE YOU GO AHEAD WITH ANY CONTRACT. We're happily living in Buttonwood now. I guess things do happen for a reason. Good luck with your new home. Trish

It is a good thing for the seller and it makes a lot of sense. The villages sold our house village house (in one hour). The buyer had a contingency, he had a contract on his northern house but was not closing for six weeks. We knew about the contingency and were surprised when the villages reps kept showing our house. We were told it is in the contract and if another good offer came in the buyer if he wanted our house would hv to drop his contingency. Totally fair. Why should the seller take their house off the market for two months and possibly lose their sale for something they have absolutely no control over.
Glad for you it all worked out and you are enjoying buttonwood

[livsea2]

You mean to tell me that people actually buy a house in the villages, or anywhere for that matter, without a contingency? How about contingent upon home inspection? A person would have to be out of their mind. :22yikes:

[ricthemic]

You mean to tell me that people actually buy a house in the villages, or anywhere for that matter, without a contingency? How about contingent upon home inspection? A person would have to be out of their mind. :22yikes:

home inspection and financing are obviously included and acceptable contingencies