{"id":24936,"date":"2023-10-26T10:00:00","date_gmt":"2023-10-26T14:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=24936"},"modified":"2023-10-25T12:56:08","modified_gmt":"2023-10-25T16:56:08","slug":"move-up-in-a-down-market-buyer-clause","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/move-up-in-a-down-market-buyer-clause\/","title":{"rendered":"Move Up in a Down Market Without the Risk of Owning Two Properties"},"content":{"rendered":"\n<p>With its constant ebbs and flows, real estate demands impeccable timing. There is an intricate art of balancing property transactions, especially in a <a href=\"https:\/\/www.zoocasa.com\/blog\/balanced-or-buyers-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">buyer\u2019s market<\/a> where there are many opportunities, but with that comes significant risks. Buyers find themselves hesitant, fearing the financial burden of potentially owning two properties, if they can\u2019t sell their current property quickly enough. However, there exists a little-known yet powerful tool: the Sale of Purchaser Property clause, the ace up your sleeve as a buyer in today\u2019s market.&nbsp;<\/p>\n\n\n\n<p><strong><em>Enjoying our content? Subscribe to our free <\/em><\/strong><a href=\"http:\/\/zoocasa.com\/newsletter\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>weekly newsletter<\/em><\/strong><\/a><strong><em> to get real estate market insights, news, and reports straight to your inbox.<\/em><\/strong><\/p>\n\n\n\n<p>This strategic provision offers a safeguard against the dual-ownership dilemma, allowing buyers to seize the advantages of a buyer&#8217;s market without being shackled by the burden of holding two properties simultaneously. By understanding and effectively utilizing this clause, savvy buyers can navigate the real estate landscape with peace of mind, capitalizing on<a href=\"https:\/\/www.zoocasa.com\/blog\/boc-october-2023\/\" target=\"_blank\" rel=\"noreferrer noopener\"> current market conditions<\/a> and a favorable upside when playing the long game.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Power of the Sale of Purchaser Property Clause<\/h2>\n\n\n\n<p>A Sale of Purchaser Property clause is a condition the buyer agent includes in the purchase and sale agreement when <a href=\"https:\/\/www.zoocasa.com\/blog\/common-conditions\/\" target=\"_blank\" rel=\"noreferrer noopener\">putting an offer on a home<\/a>. This clause makes the sale of the new property contingent upon the successful sale of the buyer&#8217;s current property.<\/p>\n\n\n\n<p>As a buyer, you essentially get to say: &#8220;I&#8217;ll buy your property, but only if I can sell my current one first.&#8221; The deal may fall through if the buyer&#8217;s property doesn&#8217;t sell within a specified period, making the new property conditional until the other sale has a firm contract in place. If the buyer successfully sells their property during the conditional period, the condition is waived, and the new home is now also considered legally sold with a binding contract. If you&#8217;ve exhausted all options trying to sell your property during that time period, the deal on the property is now void, and the buyer gets their deposit back.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Read: <a href=\"https:\/\/www.zoocasa.com\/blog\/rising-mortgage-rates-dampening-homebuyer-confidence-in-the-market-survey\/\">Rising Mortgage Rates Dampening Homebuyer Confidence in the Market: Survey<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>Many buyers and sellers might be more familiar with the terminology of an escape clause; is this any different? An escape clause is included in a purchase agreement so that a seller can continue to market their property and accept new offers from potential buyers even after accepting an offer from a primary buyer. It provides the seller a way to &#8220;escape&#8221; from the contract if a better offer comes along within a specified time frame. The key difference is that an escape clause primarily benefits the seller. A Sale of Purchaser Property clause benefits the buyer, making their purchase contingent on successfully selling their own property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tips for Sellers<\/h2>\n\n\n\n<p>Talk to your real estate agent about the escape clause. This allows you to continue to market the property and be aware of further changes in the market (price, interest rates). It&#8217;s best to have a short conditional period allowing the buyer to sell their home.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tips for Buyers<\/h2>\n\n\n\n<p>If the inclusion of this clause still keeps you up at night with the concern of owning two properties, you can always consider selling your home first. Typically, in a seller&#8217;s market, it takes many unsuccessful offers before firming up on the right home, sometimes taking weeks or even months. However, you can always take your time and work at a pace that is best for you. Take the time to find the right buyer for your property, and include a longer closing period so you have the time you need to find your next home.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Read: <a href=\"https:\/\/www.zoocasa.com\/blog\/homes-selling-under-list-price-gta-2023\/\">Homes are Selling Below Listing Price Across the GTA \u2013 Here\u2019s By How Much<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>With many properties sitting on the market and<a href=\"https:\/\/www.zoocasa.com\/blog\/crea-september-2023\/\" target=\"_blank\" rel=\"noreferrer noopener\"> inventory building up<\/a>, sellers are feeling the pressure and are eagerly waiting for any offer to be presented. Some stand-out properties are still moving quickly, while others are taking much longer to sell, creating circumstances that favour buyers.<\/p>\n\n\n\n<p>Knowing this condition exists, buyers shouldn&#8217;t be afraid to make an offer. If you&#8217;re on the fence about a property, the SPP clause gives you security that your purchase can only firm up if you sell your current home. <a href=\"https:\/\/www.zoocasa.com\/buy-with-zoocasa\" target=\"_blank\" rel=\"noreferrer noopener\">Give us a call today<\/a> to speak to a real estate agent in your area.\u00a0<\/p>\n\n\n<div class=\"cta\">\n<div class=\"cta-left\">\n<div class=\"cta-title\">Questions about the real estate market?<\/div>\n<div class=\"cta-body\">Contact us today to talk to a Realtor in your area<\/div>\n<\/div>\n<div class=\"cta-right\"><a href=\"https:\/\/www.zoocasa.com\/buy-with-zoocasa\"><button class=\"cta-button\">Talk To Our Experts<\/button><\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>With its constant ebbs and flows, real estate demands impeccable timing. There is an intricate art of balancing property transactions, especially in a buyer\u2019s market where there are many opportunities, but with that comes significant risks. Buyers find themselves hesitant, fearing the financial burden of potentially owning two properties, if they can\u2019t sell their current [&hellip;]<\/p>\n","protected":false},"author":140,"featured_media":24938,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"1","show_popup_post":"0","number_popup_post":"1","show_author_box":"1","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"footnotes":""},"categories":[76,1111,1160,113],"tags":[],"class_list":["post-24936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","category-canada","category-market-insights","category-selling-your-home"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Move Up in a Down Market Without the Risk of Owning Two Properties | Zoocasa Blog Understanding Real Estate Transactions: Leveraging the Sale of Purchaser Property Clause in a Buyer&#039;s Market<\/title>\n<meta name=\"description\" content=\"With its constant ebbs and flows, real estate demands impeccable timing. There is an intricate art of balancing property transactions, especially in a Learn how to thrive in a buyer&#039;s market without the risk of owning two properties. Discover the power of the Sale of Purchaser Property clause and gain insights into tips for buyers and sellers in the ever-changing real estate market in Canada.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoocasa.com\/blog\/move-up-in-a-down-market-buyer-clause\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Move Up in a Down Market Without the Risk of Owning Two Properties | Zoocasa Blog Understanding Real Estate Transactions: Leveraging the Sale of Purchaser Property Clause in a Buyer&#039;s Market\" \/>\n<meta property=\"og:description\" content=\"With its constant ebbs and flows, real estate demands impeccable timing. 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