What is the Hubbard Clause and how does it affect real estate deals?
Popular but misunderstood, the Hubbard contingency clause on a Purchase and Sales agreement is a good plan. A seller wants to move, he sees the perfect fit! Now the seller has a buyer’s hat on! How to make a plan to buy this property? An offer is now written with all the terms and has an attached Hubbard Addendum. It states: If I sell my current home within the designated time frame I can perform on the contract.
If the seller accepts this kind of contract he can still market his home but the Hubbard buyer is committed for the time frame and he now has a first right of refusal. In other words, a new buyer could come forward with an offer that does not have a house to sell contingency, and therefore ‘bump’ the Hubbard client
Homes are not selling in a day anymore, in this manner it becomes a little less stressful… Picture yourself in the new home, and it gives you the incentive to go through the process of selling. Price the listing right, get your property prepared for sale and the Hubbard is successful!
The seller sometimes makes a little more on the deal because the buyer is asking him to wait for him. If you want the seller to wait, then make the purchase price a little sweeter, no? In this manner you may get the seller to hold out longer for you to sell. If the seller gets an offer he wants to accept, he notifies the Hubbard. If the Hubbard can afford to hold two homes and has a lender’s letter stating this, then the Hubbard is ‘dropped’ and those buyers perform according to the Purchase and Sales Agreement that has already been in place since the onset of the deal.
A complete plan is knowing where you are going if you sell your house. Real Estate selling and buying should be exciting and enjoyable. Realtors make it happen.
Coldwell Banker Residential Real Estate, (203) 640-6407, barbara.lehrer@ coldwellbankermoves.com