Do You Know?
What is meant by a time clause?
A time clause is a Condition Precedent that is added to an Offer of Purchase and Sale of a property. The most common use of the condition is when a buyer wants to purchase a property, however, currently has a home that needs to be sold prior to the purchase of the new home. The most common time clause here in the Yukon is 48 hours, however the time clause can vary, but has to be agreed to by the vendor of the new home, as well as the purchaser.
What does this mean to you? As an owner of a home you can offer to purchase a new home conditional on the sale of your current home, with a 48 Hour clause. This is a gamble that you will sell your current home quickly and be able to proceed with the purchase of your new home. However, if another buyer comes along and offers to buy the home that is favorable to the Vendor, then the 48 hours clause is invoke, giving you 48 hours to remove the time clause and complete the purchase or step aside.
For additional information and this or any other topic please contact Josie or Greg, we will be happy to answer your questions.